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 2021are $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 2021.The forecasted demand function for 2021is:
A) = 212,000- 500P
B) = 200,000 -2,000P
C) = 80,000 -500P
D) = 150,000 -2,000P
E) = 110,000 - 500P
Correct Answer:
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