A Monopolist Has Constant Marginal Costs of $1 Per Unit

question 34

Multiple Choice

A monopolist has constant marginal costs of $1 per unit.The demand for her output is 1,000/p if p is less than or equal to 50.The demand is 0 if p > 50.What is her profit maximizing level of output?

• A)5
• B)10
• C)15
• D)20
• E)25

---

Definitions:

Tax Rate

The part of financial proceeds that the government mandates as tax payment from individuals or companies.

WACC

Stands for Weighted Average Cost of Capital, a measure that gives an idea of a company's cost of capital from all sources, including stocks and bonds.

Tax Rate

The specific percentage at which income is taxed for individuals and corporations.

Bonds

Bonds are fixed-income instruments that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and the return of the principal at maturity.