Suppose Acme and Mega Produce and Sell Identical Products and Face

question 15

Multiple Choice

Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. For a monopolist facing this demand curve, the profit-maximizing quantity is ________ and the profit-maximizing price is ________.

• A)50; $2
• B)100; $2
• C)50; $3
• D)100; $1

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