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Banana Computer Company has fixed costs of production of $100,000, while each unit costs $600 of labor and $400 of materials and fuel. At a price of $3000, consumers would buy no Banana computers, but for each $10 reduction in price, sales of Banana computers increase by 1000 units. Calculate marginal cost and marginal revenue for Banana Computer, and determine its monopoly price and quantity.
May 15 2020 View more View Less
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