A Monopolist Faces Inverse Demand $P = 300 - 6 Q$

question 52

Multiple Choice

A monopolist faces inverse demand $P = 300 - 6 Q$ and has total cost TC = 120Q + 6Q² and marginal cost $M C = 120 + 6 Q$ . What is the maximum profit the monopolist can earn in this market?

• A) 60
• B) 240
• C) 600
• D) 1200

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, providing insight into business operations and profitability.

Accounting Principle

Fundamental guidelines or rules that govern the process of accounting and financial reporting, ensuring consistency and comparability of financial data.

Extraordinary Items

Events or transactions that are both unusual in nature and infrequent in occurrence, significantly affecting a company's financial position and reported separately in financial statements to provide clarity.

Percentage Change

A measure expressing the relative difference between a new value and an old value, often used to describe changes in financial or statistical data.