Discuss a case of a monopoly facing linear demand

Reference no: EM133465987

Question:

Consider a case of a monopoly facing linear demand and constant marginal cost. Demand is: ??= 30 -2?? And marginal cost is MC = 10. Suppose moreover that the monopolist has a limited capacity of K. In other words, it must be ?? ≤??. What is the optimal price if K= 10? What if K = 4?

Reference no: EM133465987

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