Using Time-Series Data,the Demand Function for a Profit-Maximizing Monopolist Has

question 46

Multiple Choice

Using time-series data,the demand function for a profit-maximizing monopolist has been estimated as where is the amount sold,P is price,M is income,and is the price of a related good.The estimated values for M and in 2014 are $25,000 and $200,respectively.The short-run marginal cost curve for this firm has been estimated as: Total fixed cost is forecast to be $500,000 in 2016.The firm's forecasted profit loss) in 2016 is

• A)a loss of $100,000.
• B)a loss of $500,000.
• C)a profit of $100,000.
• D)a profit of $500,000.
• E)a profit of $908,000.

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