Junius Corp is a monopoly company producing digital telematic tools in Malaysia. Based on its observation...

Junius Corp is a monopoly company producing digital telematic tools in Malaysia. Based on its observation on the current uncertainty surrounding the economy due to the Covid-19 Pandemic, there is a 50% chance the firm’s demand curve will be P=20-Q and a 50% chance it will be P =100-Q. The marginal cost of the firm is MC = 4Q.

a. Derive the expression for the expected marginal revenue function for the firm.

b. What is the expected profit-maximizing quantity of the firm?

c. What is the expected profit-maximizing price of the firm?

d. What is the expected total profit of the firm?

Expert Solution

Rahul Sunny answered 1 year ago

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Junius Corp is a monopoly company producing digital telematic tools in Malaysia. Based on its observation...

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