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

question 225

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 earn profits of

• A) $6,400.
• B) $3,200.
• C) $1,600.
• D) $800.

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