Compute the upper also lower limits which marginal cost

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Reference no: EM1315012

Q. Subject: Kinked Demand Curve / Oligopolistic market

Details: The kinked demand curve in an oligopolistic market is represented by the following:
P = 100 - Q also P = 120 - 2*Q
The oligopoly firms have constant marginal costs at MC = 40

A. Conclude the profit maximizing level of output.

B. Compute the profit maximizing price.

C. Compute the upper also lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.

Reference no: EM1315012

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