Find the profit maximizing output and monopoly profit, Managerial Economics

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The demand curve for the product of a monopolist is a straight line such that quantity just falls to zero at a price of Rs 20 per unit and that the maximum quantity (at zero price) is 10000 units. The monopolist has no resource limitation and can produce any output at constant average cost of Rs 2 per unit.

Find the profit maximizing output, the price at which it will be sold, and the monopoly profit.

 


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