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Tad's bait shop has a monopoly on the bait market at Sanderson's Lake. The demand curve for bait is: QD=56 – 8P? P = 7 -1/8 * QD.
Tad has two employees he can use to search for bait. The marginal cost of using Amanda to search for bait is: MCM (QM) = ¼ * QM.
The marginal cost of using Andrew to search for bait is
MCN(QN) = 3/8 * QN.
a. Determine how many units of bait each employee should gather.
b. What is the price Tad receives for selling the bait?
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Solution ID:351087 | This paper was updated on 26-Nov-2015Price : $40