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Provide an intuitive explanation of market power.

p= Show more You are the manager of a business in a monopoly market with the following inverse demand function p= 30 (1/10)q In addition assume your production technology is described by the total cost function C(q) = 500 + 10q A). Determine the optimal quantity to produce (q M ) the price you should charge for your product (p M ) and compute the profit of your business. B). Provide an intuitive explanation of market power. What is market power? How do we measure the market power of a business? Compute the market power of your business. Show less

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