Suppose a monopoly faces an inverse demand curve of P = 100 - 2Q and has constant marginal cost of 6Q. If the government is considering legislation that would regulate price to the competitive level, what is the maximum amount the monopoly would spend on (legal) lobbying activities designed to thwart the regulation?
A) $62.50
B) $500
C) $562.50
D) None of the answers is correct.

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The Answer of Suppose a monopoly faces an inverse demand curve of P = 100 - 2Q and has constant marginal cost of 6Q. If the government is considering legislation that would regulate price to the competitive level, what is the maximum amount the monopoly would spend on (legal) lobbying activities designed to thwart the regulation?
A) $62.50
B) $500
C) $562.50
D) None of the answers is correct.

Suppose a Monopoly Faces an Inverse Demand Curve of P