What is the maximum amount the firm should be willing to pay

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You are the manager of a monopoly that faces an inverse demand curve P = 100 - 10Q, and has constant average and marginal costs of $20 per unit. The market place is such that a firm can only charge a single price to all of its customers. The government is considering legislation that would regulate your firm's price at $20 per unit. What is the maximum amount your firm should be willing to spend to lobby against the regulation?

Reference no: EM13245862

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