A New Product Has a Demand Curve That Can Be

question 23

Multiple Choice

A new product has a demand curve that can be expressed as and the monopolist that produces it has a total cost curve of
Where Q is output. Assuming the firm maximizes its profits, it will charge a price P = ____.

• A) 85.72
• B) 74.43
• C) 62.35
• D) 60.36

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Definitions:

Puncture

A small hole made by a sharp object in a surface.

Inflate

To cause to increase in size, volume, or importance, sometimes referring specifically to the increase of prices or the expansion of economic bubbles.

Patch

A small piece of material used to mend or cover a hole or a weak spot.

Bulges

Protrusions or outward expansions in a surface or structure, often caused by pressure from within.