Let the Inverse Demand Curve for a Monopolist's Product Be $P = 100 - 2 Q$

question 23

Multiple Choice

Let the inverse demand curve for a monopolist's product be $P = 100 - 2 Q$ and the marginal cost of production be constant at $M C = 10$ . Suppose that the firm considers moving from a uniform pricing strategy to a two-block tariff where the first block provides 15 units at a price of $P _ { I } =$ $\$ 70$ and the second block provides an additional 15 units at a price of $P _ { 2 } = \$ 40$ . How much does the monopolist's profit rise with this scheme?

• A) \(\$ 225\)
• B) \(\$ 337.50\)
• C) \(\$ 450.50\)
• D) \(\$ 512\)

---

Definitions:

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, especially when considered as the creation of a superhuman agency or agencies, usually involving devotional and ritual observances.

Event of Death

The occurrence marking the end of life, which can involve various causes and processes depending on biological, medical, or social factors.

Near-Death Experience

A profound psychological event that may occur to a person close to death or, if not dying, in a situation of physical or emotional crisis.

Psychological Outcomes

These are the effects or results of experiences or treatments on a person's mental processes and behavior, including their emotions, attitudes, and overall psychological well-being.