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Consider a monopolist with the following demand curve: P=200-2Q. The monopolist faces MCm=ACm=20.
a. Solve for the profit-maximizing level of monolopy output, price, and profit.
b. Suppose the monopolist has the oppurtunity to spend $A on advertising to raise its demand to P=240-2Q. Solve the most that the monopolist would spend on advertising in this situation.
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