A Monopolist Faces the Following Demand Curve

question 238

Multiple Choice

A monopolist faces the following demand curve:

The monopolist has total fixed costs of $60 and has a constant marginal cost of $15.What is the profit-maximizing price?

• A) $4
• B) $39
• C) $36
• D) $42

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Definitions:

Empathy

The ability to understand and share the feelings of another person.

Independence

The state of being free from outside control; not depending on another's authority.

Setback

An event that delays progress or causes problems, often temporary, requiring adaptation or change in plans.

Feeling

An emotional state or reaction that can be influenced by thoughts, behaviors, and physical conditions.