A monopoly firm's total cost is: TC(Q) =Q' + 15Q + 225. if the industry's demand curve is described by P= 195 - 4Q. What price will this firm charge if it is applying the profit maximizing rule? (Hint: MC = 20 + 15) O a. $ 105.00 O b. $ 75.00 Oc.$ 145.00 O d. $ 127.50 O e. $ 123.00

A monopoly firm's total cost is: TC(Q) =Q' + 15Q + 225. if the industry's demand curve is described by P= 195 - 4Q. What price will this firm charge if it is applying the profit maximizing rule? (Hint: MC = 20 + 15) O a. $ 105.00 O b. $ 75.00 Oc.$ 145.00 O d. $ 127.50 O e. $ 123.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Monopoly Market

When a company and its products dominate a sector or an industry, it is termed a monopoly. When a firm and its products control a market, then it is called a monopoly.

Question

A monopoly firm's total cost is: TC(Q) =Q' + 15Q + 225. if the industry's demand curve is
described by P= 195 - 4Q. What price will this firm charge if it is applying the profit maximizing
rule?
(Hint: MC = 20 + 15)
O a. $ 105.00
O b. $ 75.00
O c.$ 145.00
O d. $ 127.50
O e. $ 123.00

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