Scenario 12 $\impliedby$ Q < 150
Q = 360 - P for 150

question 10

Multiple Choice

Scenario 12.2:
You are studying a market for which the kinked demand curve model applies. The kinked demand curve is as follows:
Q = 1200 - 5P for 0 $\impliedby$ Q < 150
Q = 360 - P for 150 $\impliedby$ Q
The marginal cost is given as:
MC = Q
-Refer to Scenario 12.2. Suppose that the marginal cost falls such that:
MC = Q - 10
What is the profit maximizing price?

• A) 205.72
• B) 240
• C) 210
• D) all of the above
• E) none of the above