The inverse demand for Harley Davidson motorcycles is given by: P= 40,000-100 where P is the price in dollars, and Q measures the number of units sold each month. Harley Davidson is currently producing motorcycles at a constant marginal and average cost of $16,000. Assume Harley Davidson is a monopoly What is the profit-maximizing price?

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter23: Profit Maximization
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Problem 13E
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The inverse demand for Harley Davidson motorcycles is given by:
P=40,000-100
where P is the price in dollars, and Q measures the number of units sold each month. Harley Davidson is currently producing motorcycles at a
constant marginal and average cost of $16,000. Assume Harley Davidson is a monopoly.
What is the profit-maximizing price?
Transcribed Image Text:The inverse demand for Harley Davidson motorcycles is given by: P=40,000-100 where P is the price in dollars, and Q measures the number of units sold each month. Harley Davidson is currently producing motorcycles at a constant marginal and average cost of $16,000. Assume Harley Davidson is a monopoly. What is the profit-maximizing price?
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