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A monopolistic ally competitive firm faces the following demand: P 2 961 9 Q C 2Q3 12Q2 178Q...

Question:

A monopolistic-ally competitive firm faces the following demand:

{eq}P = 2,961 - 9Q {/eq}

The firm's cost function is:

{eq}C = 2Q^3 - 12Q^2 + 178Q + 1,872 {/eq}

Find the quantity, Q, that maximizes profit. Round your answer to one decimal place.

Monopoly market:

Monopoly is a market structure with a single seller selling a unique product to a large number of sellers. It maximizes profit by selling the goods at which the marginal revenue equals marginal cost.

Answer and Explanation: 1

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Given demand function:

{eq}P = 2,961 - 9Q {/eq}

TR = P{eq}\times {/eq} Q = (2961 - 9Q)Q

{eq}TR = 2961Q - 9Q^2 {/eq}

{eq}\frac{dTR}{dQ} = MR =...

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Pure Monopoly: Definition, Characteristics & Examples

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Chapter 16 / Lesson 6
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Explore the concept of pure monopoly. Learn the definition of a pure monopoly and understand its characteristics. See pure monopoly examples and when they occur.


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