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rossn rossn
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5 years ago
A monopolist has a marginal cost of $10 and no fixed cost. It faces the following inverse demand curve: p = 80 - q. The monopolist can engage in an advertising campaign that leads to a new inverse demand curve represented by p = 100 - q. What is the maximum amount that the monopolist is willing to spend in this campaign?
A) $650
B) $800
C) $1,000
D) It cannot be determined.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
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