Business
Business, 15.07.2019 19:10, gumbyseth1969p45qjl

Consider the special case of a monopoly in which mc = 0. let's find the firm's best choice when more goods can be produced at no extra cost. a great deal of e-commerce is close to this model, where the fixed cost of inventing the product and satisfying government regulators is the only cost that matters. consider a monopoly facing the following demand curve and fixed costs: p = 120 – 12q; fixed costs = 1,000 should the firm go into business? if so, how much should the firm produce?

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