A monopolist faces the demand curve q = 90 - , where q is the number of units sold and p is the price in dollars. He has quasi-fixed costs, C, and constant marginal costs of $20 per unit of output. Therefore his total costs are C + 20q if q 0 and 0 if q = 0. What is the largest value of C for which he would be willing to produce positive output?

Question

A monopolist faces the demand curve q = 90 -  , where q is the number of units sold and p is the price in dollars. He has quasi-fixed costs, C, and constant marginal costs of $20 per unit of output. Therefore his total costs are C + 20q if q > 0 and 0 if q = 0. What is the largest value of C for which he would be willing to produce positive output?

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The Answer of A monopolist faces the demand curve q = 90 -  , where q is the number of units sold and p is the price in dollars. He has quasi-fixed costs, C, and constant marginal costs of $20 per unit of output. Therefore his total costs are C + 20q if q > 0 and 0 if q = 0. What is the largest value of C for which he would be willing to produce positive output?

A Monopolist Faces the Demand Curve Q = 90 -