A profit-maximizing monopolist has the cost schedule c(y) = 20y. The demand for her product is given by y = 600/p^4, where p is
her price. Suppose that the government tries to get her to increase her output by giving her a subsidy of $15 for every unit that she sells. Giving her the subsidy would make her
answer. decrease her price by $20.
answer. decrease her price by $20.
1 answer:
You might be interested in