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Suppose that the demand function for a monopoly is given by
Q(A,P) = 100-P+A^0.5, where Pis price, and A is its advertising level. Its marginal cost is 5, and its marginal cost of advertising is 1. Calculate the output level, price level for profit maximization. What is the optimallevel of advertising?
This document contains various important questions and their appropriate answers in the subject field of Economics.
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