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Find the optimal monopoly output

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Reference no: EM131277851

Production of a certain good is discrete and has a cost structure characterized as follows:

q

100

150

200

300

400

500

C(q)/q

300

250

220

200

190

188

Assume inverse demand is p(Q) = 300 - 0.2Q

a. Find the optimal monopoly output

b. Assume an incumbent monoploy operates according to (a). Is it profitable for a second firm to enter?

Reference no: EM131277851

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