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Draw marginal revenue and marginal cost curves

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Reference no: EM13123539

Suppose that Sony is a monopolist in the market for games consoles having been the first company to develop a console. Each console costs €400 to produce. The inverse demand schedule for games consoles is p(Q) = 2400-300Q, where p denotes unit price, in €, and Q denotes quantity demanded. Assume that Sony must charge a uniform price to all consumers and can only sell whole consoles, i.e. cannot sell 2.5 or 4.2 consoles.

(i) Derive, and show on a table, Sony's total and marginal revenue for all possible output levels. From this, draw Sony's demand, marginal revenue and marginal cost curves

Reference no: EM13123539

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