Scenario 16-3 Suppose Market Demand for a Product Is Given by the by the Equation

question 131

Multiple Choice

Scenario 16-3
Suppose market demand for a product is given by the equation P = 20 - Q. For this market demand curve, marginal revenue is MR = 20 - 2Q.
-Refer to Scenario 16-3.If the marginal cost of producing this good is 4,what price would a profit-maximizing monopolist charge for the product?

• A) P = 4
• B) P = 10
• C) P = 12
• D) P = 20

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