Let the Inverse Demand Curve for a Monopolist's Product Be

question 15

Multiple Choice

Let the inverse demand curve for a monopolist's product be P = 100 - 2Q and the marginal cost of production be constant at MC = 10.Suppose that the firm considers moving from a uniform pricing strategy to a two-block tariff where the first block provides 15 units at a price of P₁ = $70 and the second block provides an additional 15 units at a price of P₂ = $40.What is the average outlay schedule for the consumer?

• A) if Q≤15 and if Q>15
• B) if Q≤15 and if Q>15
• C) if Q≤15 and if Q>15
• D) if Q≤15 and if Q>15

---

Definitions:

Easily Discouraged

Quick to lose confidence or enthusiasm in the face of challenges or setbacks.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of starting and operating a new business venture.

Setbacks

Unforeseen events or challenges that slow progress or cause plans to be revised.

Equity Financing

Raising capital through the sale of shares in a company, thus providing investors with part ownership in exchange for funds.