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Many university bookstores give faculty a discount that students do not receive. Show with a sketch graph why this practice is most likely a profit maximizing strategy instead of a university perk given to the faculty at college expense.
60.Suppose you own a firm that produces widgets and is a monopoly. The market demand is given by the equation P = 50 - 0.08Q, where P is the price of gadgets and Q is the quantity of gadgets sold per week. The marginal costs for the firm are 0.08Q
A. Draw the firm's demand, marginal revenue, and marginal cost curves.
B. Find the profit-maximizing level of output for this firm. Will the firm earn positive or negative profits?
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