SCENARIO: HOME MONOPOLIST A Monopolist Faces a Demand Curve Given by P =

SCENARIO: HOME MONOPOLIST
A monopolist faces a demand curve given by P = 60 -2Q and has total
Costs given by TC = Q2.Its marginal revenue is MR = 60 - 4Q and its
Marginal cost is MC = 2Q.
Reference: Ref 9­5
(Scenario: Home Monopolist) Now suppose that the country in which
This monopolist is located decides to engage in international trade.The
World price of the product produced by the monopolist is $10.
Calculate the value of the firm's profits.

A) $400
B) $1,200
C) -$1,600
D) $25