Question: Suppose the demand for a new technology, on which the manufacturer has a patent monopoly, is given by: Q(P, A) = (200 2P) A 0.5

Suppose the demand for a new technology, on which the manufacturer has a patent monopoly, is given by: Q(P, A) = (200 2P) A 0.5 where Q is output per period, P is the price, and A is the current period promotional expenditures. Production costs are given by: C(Q) = 40Q Calculate the profit-maximising price, advertising level, and profits for the firm

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