Suppose the inverse demand function and cost function for a monopolist's product are given by: P = 5-Q and C(Q) = 3Q If the firm wishes to maximize total revenue, what price should it charge?

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ISBN:9781285859460
Author:BOYES, William
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Chapter25: Monopoly
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QUESTION 13
Suppose the inverse demand function and cost function for a monopolist's product are given by:
P= 5-Q and C(Q) = 3Q
If the firm wishes to maximize total revenue, what price should it charge?
Transcribed Image Text:QUESTION 13 Suppose the inverse demand function and cost function for a monopolist's product are given by: P= 5-Q and C(Q) = 3Q If the firm wishes to maximize total revenue, what price should it charge?
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