Determine the profit maximizing level of output

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The kinked demand curve in an oligopolistic market is represented by the following:

P=100-Q and P=120-2*Q

The oligopoly firms have constraint marginal costs at MC=40.

a.) Determine the profit maximizing level of output.

b.) Compute the profit maximizing price.

c.) Calculate the upper and lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.

Reference no: EM13242464

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