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Firm profit-maximizing level of output

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Reference no: EM131298628

A monopolist faces the following demand:

P = 209 - 16.8Q

Due to new regulations, the marginal cost of the product is uncertain. The firm believes the marginal cost of their product will be $19 with the new regulation. Otherwise, they believe the marginal cost for their product will be $7. The firm estimates the probability of the new regulation being enforced is 0.5. Find the firm's profit-maximizing level of output. Round your answer to one decimal.

Reference no: EM131298628

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