Compute the profit-maximizing price and output


Consider a monopolist with demand curve defined by P = 100 - 2Q. The MR curve is MR = 100-4Q and the marginal cost is MC = 10+Q.

(a) Develop a diagram that illustrates this market.

(b) Compute the profit-maximizing price and output combination.

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Econometrics: Compute the profit-maximizing price and output
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