Suppose That a Monopolist's Inverse Demand Curve Can Be Expressed

question 160

Multiple Choice

Suppose that a monopolist's inverse demand curve can be expressed as: P = 10,000 + 100Q - 10Q².
The monopolist's total cost curve is: TC = 5,000Q.
The price the monopolist charges to maximize profit is P = ____.

• A) 15,999.44
• B) 12,342.32
• C) 10,111.21
• D) 8,888.11

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Definitions:

Rounded

Adjusted to the nearest whole number or specified decimal place to make calculations simpler or to reflect measurement limitations.

Decimal Equivalent

A numerical representation that expresses fractions in a decimal format.

Percent Equivalent

The numerical value of a fraction expressed as a percentage.

Rounded

The process of adjusting a numerical figure to its nearest specified place value, such as to the nearest whole number.