Demand Equation for a Good Produced by a
Monopolistically Competitive Firm:
P = 10 - Q
Reference: Ref 63
(Demand Equation) If the firm has no fixed costs and variable
Costs of $2 per unit, what is the value of the firm's monopoly
Profits when it sets a price that maximizes its monopoly profits?
A)$7
B)$12
C)$15
D)$16

Question

Demand Equation for a Good Produced by a
Monopolistically Competitive Firm:
P = 10 - Q
Reference: Ref 6­3
(Demand Equation) If the firm has no fixed costs and variable
Costs of $2 per unit, what is the value of the firm's monopoly
Profits when it sets a price that maximizes its monopoly profits?
A)$7
B)$12
C)$15
D)$16

Quizplus · Accepted Answer

The Answer of Demand Equation for a Good Produced by a
Monopolistically Competitive Firm:
P = 10 - Q
Reference: Ref 6­3
(Demand Equation) If the firm has no fixed costs and variable
Costs of $2 per unit, what is the value of the firm's monopoly
Profits when it sets a price that maximizes its monopoly profits?
A)$7
B)$12
C)$15
D)$16