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A Monopolist Has Constant Marginal Costs of $1 Per Unit

Question 23

Multiple Choice

A monopolist has constant marginal costs of $1 per unit. The demand for her output is A monopolist has constant marginal costs of $1 per unit. The demand for her output is   if p is less than or equal to 50. The demand is 0 if p > 50. What is her profit maximizing level of output? A)  5 B)  10 C)  15 D)  20 E)  25 if p is less than or equal to 50. The demand is 0 if p > 50. What is her profit maximizing level of output?


A) 5
B) 10
C) 15
D) 20
E) 25

Correct Answer:

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