A Monopolist Faces the Inverse Demand Curve P = 60

question 93

Multiple Choice

A monopolist faces the inverse demand curve P = 60 - Q.It has variable costs of Q² so that its marginal costs are 2Q,and it has fixed costs of 30.The monopoly's profit-maximizing price is

• A) 55.
• B) 50.
• C) 45.
• D) 40.

---

Definitions:

Inventory

The total amount of goods stored by a company that is ready or will be ready for sale.

Service Inventory

Intangible goods in a service operation that cannot be stored or inventoried in the traditional sense, such as available hotel rooms or hours of consulting.

Service Stockout

Occurs when a service provider cannot meet customer demand due to insufficient resources or capacity, leading to customer dissatisfaction.