If a Monopolist Faces an Inverse Demand Curve, P(y) =

question 13

Multiple Choice

If a monopolist faces an inverse demand curve, p(y) = 100 - 2y and has constant marginal costs of $16 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, its total profits will be

• A) $21.
• B) $1,764.
• C) $2,646.
• D) $882.
• E) $441.

---

Definitions:

Year 2

Year 2 typically refers to the second year in a sequence or series, such as the second year of operation for a business, the second calendar year of an entity’s existence, or a specific fiscal year designated as "Year 2."

Debt-to-Equity Ratio

This metric illustrates the proportionate use of equity and debt in financing a company's asset base.

Year 2

Typically refers to the second year in a given context, such as the second year of a company's operations, a multi-year study, or an investment timeline.

Equity Multiplier

A financial ratio that measures a company's leverage, calculated as total assets divided by total equity.