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Q. Subject: Kinked Demand Curve / Oligopolistic market
Details: The kinked demand curve in an oligopolistic market is represented by the following: P = 100 - Q also P = 120 - 2*Q The oligopoly firms have constant marginal costs at MC = 40
A. Conclude the profit maximizing level of output.
B. Compute the profit maximizing price.
C. Compute the upper also lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.
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