Suppose inverse demand is given by the following equation: P(Q) = 600 - 20Q Suppose further that you are a monopolist with constant marginal cost equal to 40. How much profit do you earn at the optimal price and quantity?     A)  3920   B)  1120   C)  0   D)  4500

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter25: Monopoly
Section: Chapter Questions
Problem 14E
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Suppose inverse demand is given by the following equation:

P(Q) = 600 - 20Q

Suppose further that you are a monopolist with constant marginal cost equal to 40. How much profit do you earn at the optimal price and quantity?

 
 

A) 

3920

 

B) 

1120

 

C) 

0

 

D) 

4500

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