Find the optimal output and retail price for a vertically

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the premium added to the risk-free rate that reflects the average sustained increase in the general level of prices for goods and services expected over the security's entire life

Consider a market with an inverse demand function that is linear: P = 46 - 2Q. The cost at the wholesale level is 0 for each unit produced. At the retail level, there is a cost of $6 associated with retailing each unit purchased at wholesale. Thus, the average cost for both levels combined is also $6. Find the optimal output and retail price for a vertically integrated monopolist, either using a graph or calculus. Illustrate answer with graph.

Reference no: EM1351299

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