A Monopolist Faces Market Demand Given by P = 80

question 46

Multiple Choice

A monopolist faces market demand given by P = 80 - Q.For this market,MR = 80 - 2Q and MC = 2Q.What quantity of output will the monopolist produce in order to maximize profits

• A)20
• B)30
• C)50
• D)60

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Definitions:

Trade

The exchange of goods and services between parties.

Imports

Goods or services brought into one country from another for the purpose of sale.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a nation's economy by generating income and employment.

Equilibrium Price

Equilibrium Price is the market price at which the quantity of goods supplied equals the quantity of goods demanded.