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    profit maximizing price

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    In a monopoly with a 50-50 chance of a demand curve of P=20-Q or P=40-Q and MC=Q, what is the profit maximizing price. Please show the steps to find either $5, 10, 15, or 20.

    © BrainMass Inc. brainmass.com October 9, 2019, 8:23 pm ad1c9bdddf
    https://brainmass.com/economics/monopolies/profit-maximizing-price-149348

    Solution Preview

    For P = 20 - Q, MR = 20 - 2Q
    Profit is maximized at MR = MC, which is 20 - 2Q = Q, or 3Q = 20, ...

    Solution Summary

    Show steps to find the profit maximizing price.

    $2.19