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A monopolist faces a demand curve given by P=70-2Qwhere P is the price of the good...

A monopolist faces a demand curve given by P=70-2Qwhere P is the price of the good and Q is the quantity demanded, the marginal cost of production is constant and is equal to $6, there are no fixed cost, how much profit will the monopolist make?

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Answer #1

P= 70 - 2Q

TR= PQ = 70Q - 2Q^2

MR= 70 - 4Q

MR= MC at profit maximization.

70 - 4Q = 6

Q= 16

P= 70-2*16= 38

Profit = 38*16 - 6*16= 512

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