The Inverse Demand Equation for a Monopoly Firm Is P

Multiple Choice

The inverse demand equation for a monopoly firm is P = 60 - 0.015Q.The monopolist faces constant costs of production in the long run with LAC = LMC = $30.At the profit-maximizing price of $___________,the monopolist earns economic profit of $_________.

A) $30; $0
B) $30; $12,000
C) $40; $0
D) $40; 12,000
E) none of the above