Suppose a Firm's Inverse Demand Curve Is P = 150

question 35

Multiple Choice

Suppose a firm's inverse demand curve is P = 150 - 5Q, its Lerner index is 0.875 at the profit-maximizing quantity, and its marginal cost is constant at $10. The profit-maximizing quantity is ____.

• A) 24
• B) 20
• C) 14
• D) 0

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Definitions:

Scapula

A flat, triangular bone located in the upper back, known commonly as the shoulder blade.

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum, commonly known as the collarbone.

Humerus

The long bone in the upper arm, connecting the shoulder to the elbow.

Ulna

One of the two long bones in the forearm, extending from the elbow to the smallest finger, and positioned on the side opposite to the thumb.