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Topic Production & Cost - ECONOMICS (MBA)
A monopoly firm is faced with the following market conditions:
Demand: P = 100 - Q
Total Cost: TC = 100 + 20Q
1) Derive the monopoly profit maximisation price (P) and quantity (Q)
2) Determine the maximisation amount of profit that the firm could obtain. Verify that it is a maximum and not a minimum.
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