A Monopolist Faces the Inverse Demand Function Described by P

question 9

Multiple Choice

A monopolist faces the inverse demand function described by p = 50 - 4q, where q is output.The monopolist has no fixed cost and his marginal cost is $5 at all levels of output.Which of the following expresses the monopolist's profits as a function of his output?

• A)50 - 4q - 5
• B)50 - 8q
• C)45q - 4q²
• D)50q - 4q² - 5
• E)None of the above.

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