If a monopolist's inverse demand curve is p = 100 − 2Q, and MC is equal to (a constant) 16, then profit maximization A. is achieved by setting price equal to 21. B. is achieved only by shutting down in the short run. C. is achieved when 21 units are produced.

If a monopolist's inverse demand curve is p = 100 − 2Q, and MC is equal to (a constant) 16, then profit maximization A. is achieved by setting price equal to 21. B. is achieved only by shutting down in the short run. C. is achieved when 21 units are produced.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 5SQ

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Question

If a monopolist's inverse demand curve is p = 100

−

2Q, and MC is equal to (a constant) 16, then profit maximization

is achieved by setting price equal to 21.

is achieved only by shutting down in the short run.

is achieved when 21 units are produced.

cannot be determined solely from the information provided.

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