Rich Uncle Pennybags is the only seller of board games in Atlantic City, New Jersey. The inverse demand curve for board games is given by P=40−0.5=40−0.5⁢, where Q is in hundreds of games per month. Rich Uncle Pennybags’ marginal cost of producing board games is 7+0.17+0.1⁢.
If Rich Uncle Pennybags cannot price discriminate, what is his profit-maximizing level of output? What is his profit-maximizing price?
Q* =
P* = $