A Monopolist Faces the Inverse Demand Curve P = 60

question 66

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.At its profit-maximizing output level,the monopoly's average cost is

• A) 11.
• B) 13.
• C) 17.
• D) 21.5.

---

Definitions:

Demand

The amount of a product or service that consumers are prepared and capable of buying at different price levels over a specific time frame.

Related Goods

Related goods are goods that can either be substitutes or complements to each other, affecting each other's demand and consumption patterns.

Complements

Goods or services that are used together, where demand for one increases demand for the other.

Demand for Memory Cards

The consumer's desire and willingness to purchase memory cards at varying prices, influenced by factors such as technology usage and data storage needs.