Scenario 14-4 Suppose a Monopolist Has a Demand Curve That Can Be

question 317

Multiple Choice

Scenario 14-4
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 14-4.The profit-maximizing monopolist will produce an output level of

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

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Definitions:

Operating Profit

Income generated from the principal activities of a company, not including interest and tax deductions.

Retail Price

The price at which goods or services are sold to the public.

Trade Discount

A reduction in the list price of goods or services offered to buyers, typically in the business-to-business market.

Wholesalers

Businesses or individuals that sell goods in large quantities at lower prices, typically to retailers or professional buyers.