Suppose that single-price, single-product and single-plant monopolist faces the following demand curve: Q = 3000 – 20P. The monopolist's fixed cost of production is $5,000 and its average variable cost is 0.2Q. Find the profit of the monopolist. $12,000 O $15,000 O $21,960 $17,500

Suppose that single-price, single-product and single-plant monopolist faces the following demand curve: Q = 3000 – 20P. The monopolist's fixed cost of production is $5,000 and its average variable cost is 0.2Q. Find the profit of the monopolist. $12,000 O $15,000 O $21,960 $17,500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose that single-price, single-product and single-plant monopolist faces the
following demand curve: Q = 3000 – 20P. The monopolist's fixed cost of production is
$5,000 and its average variable cost is 0.2Q. Find the profit of the monopolist.
$12,000
$15,000
$21,960
O $17,500

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