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All 100 consumers are alike and each has a demand curve for a monopolist's product p= 5-2q. The cost of production C(Q) =100+Q. Let the monopolist charge a price of $PM for qM unit purchased. Find the menu prices that maximize profits? (The buyer pays menu price PM for quantity qM) What is qM? Select one: O a. 0

All 100 consumers are alike and each has a demand curve for a monopolist's product p= 5-2q. The cost of production C(Q) =100+Q. Let the monopolist charge a price of $PM for qM unit purchased. Find the menu prices that maximize profits? (The buyer pays menu price PM for quantity qM) What is qM? Select one: O a. 0

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter24: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 15CQ
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Please answer questions 8 through 11.
Use the following to answer questions 8-11: All 100 consumers are alike and each has a demand curve for a monopolist's product of p= 5-2q. The cost of production C(Q) =100+Q. Let the monopolist charge a price of $PM for qM unit purchased. Find the menu prices that maximize profits? (The buyer pays menu price PM for quantity qM) What is qM? Select one: O a. 0<qM<2 O b. 2< qM<4 O c. 4<qM<6 O d. 6<qM<8 O e. None of the above What is PM? Select one: O a. 0< PM<5 O b. 5< PM<10 O c. 10< PM<15 O d. 15< PM<20 Oe. None of the above
Transcribed Image Text:Use the following to answer questions 8-11: All 100 consumers are alike and each has a demand curve for a monopolist's product of p= 5-2q. The cost of production C(Q) =100+Q. Let the monopolist charge a price of $PM for qM unit purchased. Find the menu prices that maximize profits? (The buyer pays menu price PM for quantity qM) What is qM? Select one: O a. 0<qM<2 O b. 2< qM<4 O c. 4<qM<6 O d. 6<qM<8 O e. None of the above What is PM? Select one: O a. 0< PM<5 O b. 5< PM<10 O c. 10< PM<15 O d. 15< PM<20 Oe. None of the above
What is the maximum profit the monopolist can earn in this market? (pi) Select one: a. 0< pi<100 O b. 100< pi<200 O c. 200< pi<400 O d. 400< pi<500 O e. None of the above What is the consumer surplus? (CS) Select one: O a. 10< CS <20 O b. 20< CS <30 O c. 30< CS <150 O d. 150< CS <250 O e. None of the above
Transcribed Image Text:What is the maximum profit the monopolist can earn in this market? (pi) Select one: a. 0< pi<100 O b. 100< pi<200 O c. 200< pi<400 O d. 400< pi<500 O e. None of the above What is the consumer surplus? (CS) Select one: O a. 10< CS <20 O b. 20< CS <30 O c. 30< CS <150 O d. 150< CS <250 O e. None of the above
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