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djsmyers djsmyers
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7 years ago
Suppose a monopolist is considering starting a $500,000 advertising campaign. The current demand for its product is given by
      p = 150 - 3Q
where Q is the quantity of output in thousands. If the monopolist undertakes the advertising campaign, it expects demand to increase to
      p = 200 - 4Q
The (non-advertising) cost for the monopolist is C(Q) = 30Q.
a.   Determine whether the monopolist should undertake the advertising campaign assuming that it is correctly anticipating the potential increase in demand.
b.   What is the most the monopolist will invest towards this advertising campaign?
Textbook 
Microeconomics: Theory and Applications with Calculus

Microeconomics: Theory and Applications with Calculus


Edition: 4th
Author:
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RumkoRumko
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#1
Posts: 279
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7 years ago
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djsmyers Author
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7 years ago
Thank you, thank you, thank you!
jblazah
wrote...

Yesterday
Thanks for your help!!
ealvino1610
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2 hours ago
Smart ... Thanks!
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