The land of Ashina is known for its Rejuvenating Waters that are produced locally by a single manufacturer: Genichiro. The demand for the Waters is given by the following inverse demand: p=400-2.5Q The wells that produce the waters have a fixed cost of 10,000 and a constant marginal cost of 10 per unit. Acting as a monopolist, what price and quantity of water will Genichiro set? OA. P= 125 Q = 150 OB. P = 65 Q = 225 OC. P=205 Q = 78 OD. P=286 Q = 125 What is the deadweight loss created by the monopoly? OA. 9250 OB. 1420 OC. 7605 OD. 8250

The land of Ashina is known for its Rejuvenating Waters that are produced locally by a single manufacturer: Genichiro. The demand for the Waters is given by the following inverse demand: p=400-2.5Q The wells that produce the waters have a fixed cost of 10,000 and a constant marginal cost of 10 per unit. Acting as a monopolist, what price and quantity of water will Genichiro set? OA. P= 125 Q = 150 OB. P = 65 Q = 225 OC. P=205 Q = 78 OD. P=286 Q = 125 What is the deadweight loss created by the monopoly? OA. 9250 OB. 1420 OC. 7605 OD. 8250

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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