A Monopolist Faces the Demand Curve Q = 90 -

question 38

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.She has quasi-fixed costs, C, and constant marginal costs of $20 per unit of output.Therefore her total costs are C + 20q if q > 0 and 0 if q = 0.What is the largest value of C for which she would be willing to produce positive output?

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

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Definitions:

Brain Efficiency

The ability of the brain to perform tasks quickly and accurately using the least amount of mental effort.

Disjunct

A term used in logic to refer to an element of a disjunction, where at least one of the disjuncts must be true for the disjunction to be true.

Disjunction

An operation in logic that returns true when at least one input is true.

Conjunct

In logic, an element of a conjunction, or a compound statement formed by connecting two statements with the word "and."