Suppose that Kalamazoo Competition-Free Concrete's demand function is D(P) = 5,000 - 50P, its marginal cost is

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Suppose that Kalamazoo Competition-Free Concrete's demand function is D(P) = 5,000 - 50P, its marginal cost is $40 per cubic yard, and it faces an avoidable fixed cost of $40,000 per year. What is its profit-maximizing sales quantity and price? What is the deadweight loss from monopoly pricing?
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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