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

question 6

Multiple Choice

If a monopolist faces an inverse demand curve, p(y) = 100 - 2y and has constant marginal costs of $8 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, its total profits will be

• A)$2,116.
• B)$23.
• C)$1,058.
• D)$3,174.
• E)$529.

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Definitions:

Unbiased Manner

An approach or method that does not show or involve any prejudice towards a particular perspective, side, or outcome.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typically categorized into the four Ps: Product, Price, Place, and Promotion.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, including product, price, place, and promotion.

International Trade Agreement

A treaty or contract between countries that governs the exchange of goods, services, and investment across borders.