A Firm with Market Power Faces the Demand Function Q

question 58

Multiple Choice

A firm with market power faces the demand function q = 2,000 - 20P. The firm's total cost function is TC(q) = 20q + 0.02q² + 2,000. If the firm behaves as a single-price monopoly, it will produce an output level of ____ units.

• A) 571.43
• B) 523.86
• C) 483.27
• D) 427.63

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