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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer questions 8 through 11.
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
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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