Question: A profit - maximizing monopolist faces a demand function given by q = 3 0 2 p , where p is the price of her
A profitmaximizing monopolist faces a demand function given by q
p where p is the price of her output in dollars. She has a constant
marginal cost of $ per unit of output. In an effort to induce her to
increase her output, the government agrees to pay her a subsidy of $
for every unit that she produces. She will
a decrease her price by $ per unit.
b decrease her price by $ per unit.
c decrease her price by $ per unit.
d decrease her price by $ per unit.
e not change her price.
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