Multiple Choice
Suppose the demand function in the industry is p = 100 - y and each firm has a constant marginal cost of $40. Suppose there is a monopoly firm and a potential entrant. The output that maximizes the entrant's profit is:
A) 20.
B) 10.
C) 30.
D) 15.
Correct Answer:
Verified
Correct Answer:
Verified
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