If a Monopolist Faces an Inverse Demand Curve, P(y)=100 -

question 16

Multiple Choice

If a monopolist faces an inverse demand curve, p(y) =100 - 2y and has constant marginal costs of $4 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, its total profits will be

• A)$24.
• B)$3,456.
• C)$2,304.
• D)$1,152.
• E)$576.

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Definitions:

Acetaminophen

A medication used to reduce fever and relieve pain.

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The ingestion or application of a drug or medicine in quantities greater than are recommended or generally practiced, often resulting in a toxic effect.

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The mutual or reciprocal action or influence between entities, substances, or people.

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Medications that legally require a medical prescription to be dispensed, due to their potential side effects, toxicity, or risk of misuse.