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

question 9

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. Which of the following is the optimal two-block tariff for the firm?

• A) P₁ = $70; Q₁ = 15; P₂ = $40; Q₂ = 30
• B) P₁ = $60; Q₁ = 20; P₂ = $30; Q₂ = 15
• C) P₁ = $80; Q₁ = 10; P₂ = $40; Q₂ = 15
• D) P₁ = $55; Q₁ = 22.5; P₂ = $55; Q₂ = 22.5

---

Definitions:

Work Responsibilities

The tasks and duties that are required as part of one's role in a job or organization.

Network Structures

Organizational designs that prioritize decentralized connections and collaborations across various nodes or units, often enhancing flexibility and innovation.

Complex Business

Refers to businesses that operate with multiple layers of management, numerous product lines, or in highly regulated industries, leading to intricate operational processes.

Effective Control

The ability to regulate processes, behaviors, or operations to ensure they meet set standards or objectives.