A Monopolist Faces the Demand Curve Q = 90 -

question 41

Multiple Choice

A monopolist faces the demand curve q = 90 - p/2, where q is the number of units sold and p is the price in dollars.He has quasi-fixed costs, C, and constant marginal costs of $20 per unit of output.Therefore his total costs are C + 20q if q > 0 and 0 if q = 0.What is the largest value of C for which he would be willing to produce positive output?

• A)$3,200
• B)$2,560
• C)$4,800
• D)$20
• E)$3,840

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Definitions:

Biological Evolution

The process by which species of organisms change over time through variations in their genetic material.

Anaerobic Prokaryotes

Microorganisms that thrive in environments devoid of oxygen, obtaining energy through anaerobic processes such as fermentation.

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