Scenario 15-4 Suppose a Monopolist Has a Demand Curve That Can Be

question 641

Multiple Choice

Scenario 15-4
Suppose a monopolist has a demand curve that can be expressed as P=90-Q. The monopolist's marginal revenue curve can be expressed as MR=90-2Q. The monopolist has constant marginal costs and average total costs of $10.
-Refer to Scenario 15-4. The profit-maximizing monopolist will earn profits of

• A)$6,400.
• B)$3,200.
• C)$1,600.
• D)$800.

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