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:

Sample Statistic

A numerical measure that describes an aspect of a sample drawn from a population.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean.

Standard Deviation

An indicator of the spread or fluctuations in a data set, showing the degree to which the data points deviate from the average value.

Parameter

A numerical characteristic of a statistical population, such as a mean or standard deviation, that describes some aspect of the population.