A monopolist faces the inverse demand curve P = 60

Name: A monopolist faces the inverse demand curve P = 60 - Q.It has variable costs of Q 2 so that its marginal costs are 2Q,and it has fixed costs of 30.The monopoly's profit-maximizing price is A) 55. B) 50. C) 45. D) 40.
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Question

A monopolist faces the inverse demand curve P = 60 - Q.It has variable costs of Q² so that its marginal costs are 2Q,and it has fixed costs of 30.The monopoly's profit-maximizing price is A) 55. B) 50. C) 45. D) 40.

Quizplus · Accepted Answer

The Answer is C