You Are the Manager of a Monopoly Firm with (Inverse)demand

question 109

Multiple Choice

You are the manager of a monopoly firm with (inverse) demand given by P = 50 − 0.5Q.Your firm's cost function is C = 40 + 5Q².Your firm's marginal revenue is:

• A) P = 50 − 0.5Q.
• B) P = 100 − Q.
• C) P = 50 − Q.
• D) There is insufficient information to determine the firm's marginal revenue.

---

Definitions:

Gnome Molds

The forms or templates used for the creation of gnome figurines, typically made from materials like plastic, silicone, or metal.

Plaster

Plaster is a building material used for coating, protecting, and decorating walls and ceilings; it can also refer to medical or artistic uses.

Labor

Labor refers to the use of both physical and mental human efforts in creating goods and services.

Positive Supply

A situation where an increase in price leads to an increase in the quantity supplied, holding other factors constant.