Math Homework Help
There is a single price (profit maximizing) monopoly in a given industry, selling a perfectly divisible good. The
There is a single price (profit maximizing) monopoly in a given industry, selling a perfectly divisible good. The
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market demand is P = β-Q, where β＞0 is the maximum willingness to pay, P represents the price and Q represents the quantity. The total cost function is C(Q) = γQ, where 0≤γ≤β. What is the monopoly’s profit? What is the monopoly-optimal price (i.e., the price that maximizes the monopoly profit)?
All numerical answers must be fractions. Do not use decimals.
Please help to solve this problem, thank you!
