A Monopolist Faces Inverse Demand $P = 300 - 6 Q$

question 15

Multiple Choice

A monopolist faces inverse demand $P = 300 - 6 Q$ and has marginal cost $M C = 120 + 6 Q$ . What price should this monopolist charge to maximize profit?

• A)10
• B)50
• C)210
• D)240

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Definitions:

Capital Structure Decision

The choice a company makes regarding the mix of debt and equity that it uses to finance its operations.

Net Working Capital

A financial metric that calculates the difference between a company's current assets and its current liabilities.

Management Of Current Assets

The strategy of managing a company's short-term assets such as cash, inventory, and receivables.