Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is TC 100-5q+q², MC = 2q-5, and the demand function is Q = 55-p (inverse- demand is p= 55-Q). What price should DD set to maximize profit? (a) 20 (b) 25 (c) 30 (d) 35 (e) 40

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
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4. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is
TC 100-5q+q², MC = 2q-5, and the demand function is Q = 55-p (inverse
demand is p= 55-Q). What price should DD set to maximize profit?
(a) 20
(b) 25
(c) 30
(d) 35
(e) 40
Transcribed Image Text:4. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is TC 100-5q+q², MC = 2q-5, and the demand function is Q = 55-p (inverse demand is p= 55-Q). What price should DD set to maximize profit? (a) 20 (b) 25 (c) 30 (d) 35 (e) 40
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