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Business, 03.07.2019 04:20 johnsonwhitney2

(40 pt.) a monopolist has a quadratic cost function c(q) = q2 + 12. the market demand is given by q(p) = 24 − p. a. (5 pt.) find inverse demand function p(q) and revenue function r(q). b. (5 pt.) write down the profit maximization problem of this monopolist. c. (10 pt.) determine the monopolist’s choice qm that maximizes profit by investigating the first- and second-order conditions. d. (10 pt.) find the price p m the monopolist would set up and calculate the profit at the monopoly outcome. e. (10 pt.) find market outcome (qc , p c ) in which the monopolist behaves as if in a competitive market, and calculate the profit at this outcome.

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(40 pt.) a monopolist has a quadratic cost function c(q) = q2 + 12. the market demand is given by q(...
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