Maurice Tutor

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Category > Management Posted 13 Oct 2017 My Price 4.00

zero economic profit

Assume that a monopolist sells a product with the cost function C = F + 20Q, where C is total cost, F is a fixed cost, and Q is the level of output. The inverse demand function is P = 60 - Q, where P is the price in the market. The firm will earn zero economic profit when it charges a price of 30 (this is not the price that maximizes profit). How much profit does the firm earn when it charges the price that maximizes profit?

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Maurice Tutor
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Status NEW Posted 13 Oct 2017 04:10 PM My Price 4.00

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