The Demand Curve Facing a Monopolist Is D(p)= 100/p If

question 55

Multiple Choice

The demand curve facing a monopolist is D(p) = 100/p if p is 20 or smaller and D(p) = 0 if p > 20.The monopolist has a constant marginal cost of $1 per unit produced.What is the profit-maximizing quantity of output for this monopolist?

• A)4
• B)3
• C)2
• D)5
• E)It cannot be determined from the information given.

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