Using time-series data,the demand function for a profit-maximizing monopolist has been estimated as
where
is the amount sold,P is price,M is income,and
is the price of a related good.The estimated values for M and
in 2014 are $25,000 and $200,respectively.The short-run marginal cost curve for this firm has been estimated as:
Total fixed cost is forecast to be $500,000 in 2016.The forecasted demand function for 2016 is:
A)
= 212,000- 500P
B)
= 200,000 - 2,000P
C)
= 80,000 - 500P
D)
= 150,000 - 2,000P
E)
= 110,000 - 500P
Correct Answer:
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