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In: Economics

he monopolist: "You Can't Handle the Ruth" sells baseball cards. It has a fixed cost of...

  1. he monopolist: "You Can't Handle the Ruth" sells baseball cards. It has a fixed cost of $5000 in rent, and a variable cost of 2?. Q is t he number of baseball cars wehich are sold. The firm faces a market demand curve of P=200-Q.
  1. What is the firms profits maximizing equilibrium?
  2. How much profits is the firm making?
  3. Should it stay open or shut down?

Solutions

Expert Solution

The equilibrium conditions for the monopolist is MR=MC. All the three parts are solved in detail.

Thank you

Rahul Sunny answered 1 year ago
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