A Monopolist Faces the Following Demand Curve: P = 12

question 10

Multiple Choice

A monopolist faces the following demand curve: P = 12 - .3Q with marginal costs of $3.What is the monopolistic PRICE?

• A) P = $5.50
• B) P = $6.50
• C) P = $7.50
• D) P = $8.50
• E) P = $9.50

---

Definitions:

Customer Waiting Time

The amount of time a customer waits before receiving a service or good.

Queuing Theory

A mathematical study of waiting lines or queues, focused on understanding and optimizing processes in which entities wait for service.

Waiting Time

The period during which one waits for something to happen or arrive.

Hierarchy of Authority

An organizational structure where every entity in the organization, except one, is subordinate to a single other entity.