A Firm with Market Power Faces the Demand Function Q

question 18

Multiple Choice

A firm with market power faces the demand function q = 1,000 - 100P. The firm's marginal cost function is MC(q) = 2 + 0.08q. If the firm behaves as a single-price monopoly, the optimal output to produce is $____.

• A) 90
• B) 80
• C) 70
• D) 60

---

Definitions:

Derived Demand

A demand for a commodity, service, etc., that is a consequence of the demand for something else.

Proposals

Formal offers or plans submitted for evaluation or consideration to undertake a project or relationship.

Web Portal

A website that provides access to a variety of services and information, acting as a gateway on the Internet.

Internet Site

A location on the World Wide Web, identified by a specific URL, where information or services are provided.