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

question 63

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 $M C = 10$ . Which of the following is the optimal two-block tariff for the firm?

• A) \(P _ { 1 } = \$ 70 ; Q _ { 1 } = 15 ; P _ { 2 } = \$ 40 ; Q _ { 2 } = 30\)
• B) \(P _ { I } = \$ 60 ; Q _ { 1 } = 20 ; P _ { 2 } = \$ 30 ; Q _ { 2 } = 15\)
• C) \(P _ { 1 } = \$ 80 ; Q _ { 1 } = 10 ; P _ { 2 } = \$ 40 ; Q _ { 2 } = 15\)
• D) \(P _ { 1 } = \$ 55 ; Q _ { 1 } = 22.5 ; P _ { 2 } = \$ 55 ; Q _ { 2 } = 22.5\)

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