Suppose the monopolist faces the following demand curve: P = 100 3Q. Marginal cost of production is constant and equal to $10, and there are no fixed costs. What is the monopolist’s profit maximizing level of output?
A) Q = 10
B) Q = 15
C) Q = 16
D) Q = 30
E) Q = 33
F) none of the above
What price will the profit maximizing monopolist charge?
A) P = $100
B) P = $55
C) P = $45
D) P = $15
E) P = $10
F) None of the above
How much profit will the monopolist make if she maximizes her profit?
A) Profit = $300
B) Profit = $327.5
C) Profit = $825
D) Profit = $1,012.5
E) Profit = $1,350
F) None of the above
What is the value of consumer surplus?
A) CS = $300
B) CS = $100
C) CS = $412.5
D) CS = $337.5
E) CS = $750
F) None of the above