Scenario 15-3 Suppose a Monopolist Has a Demand Curve That Can Be

question 153

Multiple Choice

Scenario 15-3
Suppose a monopolist has a demand curve that can be expressed as P=90-Q.The monopolist's marginal revenue curve can be expressed as MR=90-2Q.The monopolist has constant marginal costs and average total costs of $10.
-Refer to Scenario 15-3.The profit-maximizing monopolist will produce an output level of

• A) 80 units.
• B) 40 units.
• C) 20 units.
• D) 10 units.