(Answered) 1 a monopolist clear water ltd bottles clean water in 10

Engineering

1. A monopolist Clear Water Ltd bottles clean water in 10 litre containers and sells it to a small rural town. It can produce at a total cost of 10Q per day. It faces a daily market demand curve given by 2Q = 90 - P

(1a) What is the profit-maximising price and quantity sold per day for Clear Water. Also what its profits and illustrates its equilibrium position graphically (Price, quantity and profit).

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