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Subject: Kinked Demand Curve / Oligopolistic marketDetails: The kinked demand curve in an oligopolistic market is represented by the following:P = 100 - Q and P = 120 - 2*QThe oligopoly firms have constant marginal costs at MC = 40
A. Determine the profit maximizing level of output.
B. Compute the profit maximizing price.
C. Compute the upper and lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.
Elucidate the price also quantity that maximizes the company's profit.
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