What is his profit maximizing level of output and price?
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Suppose that the market demand for Mountain Spring Water a monopolist, is given as follows:
P=1200-Q. Mountain spring water can be produced at no cost. What is the profit maximizing level of output and price of this monopolist?
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This posting offers help with calculating profit maximizing level of output and price of this monopolist.
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Demand function: P = 1200 - Q
Revenue function: R = PQ = 1200 Q - Q2
Since cost is zero, the profit ...
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