Suppose a Monopolist's Demand Curve Is P = 60 -

question 40

Multiple Choice

Suppose a monopolist's demand curve is P = 60 - Q,its cost function is TC = 10Q + 50,and its marginal cost is 10.If a governmental agency wished to set the price so that it created the smallest deadweight loss without causing the monopolist to have negative economic profits,this price would be

• A) $10.00.
• B) $11.02.
• C) $14.57.
• D) $35.00.

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