Suppose a Patent Is Granted for a Product That Has

question 10

Multiple Choice

Suppose a patent is granted for a product that has the linear demand curve P = a - b Q.The constant marginal cost of producing this product is $50 per unit,a unit sells for $150,and consumers purchase 100 units of the good at that price.If the monopoly is maximizing profit,b equals

• A) 1.
• B) 1.5.
• C) 2.
• D) 2.5.

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