QUESTION 4 A monopolist has the following Demand and Marginal Revenue equations: (Demand) P = 500 - 4Q (Marginal Revenue) MR = 500 - 8Q Assume that this monopoly is a profit maximizing firm who is only willing to sell each unit at the same price. Once the firm decides on an output level, the firm must set a price. Given the demand and marginal revenue equations above, what is the lowest price this firm will ever set: O a. P = $500 O b.P = $450 O C.P = $400 O d.P = $350 O e.P = $300 O f. P = $250 O g.P = $200 O h. none of the above

QUESTION 4 A monopolist has the following Demand and Marginal Revenue equations: (Demand) P = 500 - 4Q (Marginal Revenue) MR = 500 - 8Q Assume that this monopoly is a profit maximizing firm who is only willing to sell each unit at the same price. Once the firm decides on an output level, the firm must set a price. Given the demand and marginal revenue equations above, what is the lowest price this firm will ever set: O a. P = $500 O b.P = $450 O C.P = $400 O d.P = $350 O e.P = $300 O f. P = $250 O g.P = $200 O h. none of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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