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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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
Transcribed Image Text:Tangy Tangerines is a monopolistic firm in the market for tangerines. The following equations describe the demand for, and the cost of
producing tangerines, where Q is output measured in thousand pounds, and P is price per pound.
Demand: P 59-3Q
Marginal Cost: MC = 3 + Q
Total Cost: TC = 4 + 3Q+0.50²
The monopolist will charge what price and earn what profit?
Price $35 and Profit-$220 thousand.
Price
$19 and Profit $53 thousand. *
Price $8 and Profit=$220 thousand.
Price $19 and Profit= $14 thousand.
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