A Profit-Maximizing Monopolist Faces the Demand Curve Q = 100

question 47

Multiple Choice

A profit-maximizing monopolist faces the demand curve q = 100 - 3p.It produces at a constant marginal cost of $20 per unit.A quantity tax of $10 per unit is imposed on the monopolist's product.The price of the monopolist's product

• A)rises by $5.
• B)rises by $10.
• C)rises by $20.
• D)rises by $12.
• E)stays constant.

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