Involve a profit-maximizing monopolist. Using time-series data, the demand function for the 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 2012 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 2015.
-The forecasted demand function for 2015 is:
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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