The demand function of certain goods is p=400-0.4q. The monopolistic producer of this good has a fixed cost of 200 euro and a variable cost of 160 euro for goods sold. At what price does the producer need to sell his goods in order to maximize his revenue? At what price does the producer need to sell his goods in order to maximize his profit? Determine marginal revenue and marginal cost at the point where profits are maximal.

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To find the price at which the monopolistic producer needs to sell their goods in order to maximize revenue and profit as well as to determine the mar... View the full answer