Suppose a Monopoly's Inverse Demand Curve Is P = 100

question 119

Multiple Choice

Suppose a monopoly's inverse demand curve is P = 100 - Q,it produces a product with a constant marginal cost of 20,and it has no fixed costs.Compared to the consumer surplus if the market were perfectly competitive,consumer surplus is how much less when the monopolist practices perfect price discrimination?

• A) 3200
• B) 1600
• C) 800
• D) 0

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Definitions:

Revenue Model

A framework for generating financial income by specifying how a business will charge for its products or services.

Quadratic Equation

An equation of the form ax^2 + bx + c = 0, where a, b, and c are constants, and x represents an unknown.

Quadratic Equation

A mathematical equation of the form ax^2 + bx + c = 0, where x represents an unknown variable, and a, b, and c are constants with a ≠ 0.

Real Solutions

Solutions to equations that can be represented on the number line.