Calculate profit-maximizing price and quantity of manuals

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a. Assume that a monopoly has a linear demand curve. If it is charging the profit maximizing price, will the demand for its product at that price be elastic or inelastic? Explain fully

b. Bringing Up Baby has a monopoly in the production of step-by-step manuals for child rearing. Its total cost of producing manuals is given by TC =12.5Q , and the demand for manuals is given by the non-linear demand, Q =25,000P^-2.

Calculate the profit-maximizing price and quantity of manuals.

Reference no: EM131247479

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