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{"ops":[{"insert":"A monopoly publishing house publishes a magazine, earning revenue from selling the\nmagazine, as well as by publishing advertisements. Thus R = q.p(q) + A(q), where R is\ntotal revenue, q denotes quantity, p(q) is the inverse demand function, and A(q) is the\nadvertising revenue. Assume that p(q) is decreasing and A(q) is increasing in q. The cost\nof production c(q) is also increasing in the quantity sold. Assume all functions are twice\ndifferentiable in q.\n\n(i) Derive the profit-maximising outcome.\n(ii) Is the marginal revenue curve necessarily negatively sloped?\n(iii) Can the monopolist fix the price of the magazine below the marginal cost of production?\n"}]}
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