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A monopolist faces the following demand curve: Price Quantity TR MR TC $10 5 55 $9 10 80 $7.50 16 110 $7 23 145 $6 31 185 $5 45 255 $4 52 290 $3 60 330 The monopolist has total fixed costs of $30 and a constant marginal cost of $5. They also face a constant variable cost of $5 per unit. What is the profit-maximizing level of output? 7 units 16 units 23 units 31 units

A monopolist faces the following demand curve: Price Quantity TR MR TC $10 5 55 $9 10 80 $7.50 16 110 $7 23 145 $6 31 185 $5 45 255 $4 52 290 $3 60 330 The monopolist has total fixed costs of $30 and a constant marginal cost of $5. They also face a constant variable cost of $5 per unit. What is the profit-maximizing level of output? 7 units 16 units 23 units 31 units

Economics:
Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter25: Monopoly
Section: Chapter Questions
Problem 14E
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A monopolist faces the following demand curve: Price Quantity TR MR TC $10 5 55 $9 10 80 $7.50 16 110 $7 23 145 $6 31 185 $5 45 255 $4 52 290 $3 60 330 The monopolist has total fixed costs of $30 and a constant marginal cost of $5. They also face a constant variable cost of $5 per unit. What is the profit-maximizing level of output? 7 units 16 units 23 units 31 units
Transcribed Image Text:A monopolist faces the following demand curve: Price Quantity TR MR TC $10 5 55 $9 10 80 $7.50 16 110 $7 23 145 $6 31 185 $5 45 255 $4 52 290 $3 60 330 The monopolist has total fixed costs of $30 and a constant marginal cost of $5. They also face a constant variable cost of $5 per unit. What is the profit-maximizing level of output? 7 units 16 units 23 units 31 units
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