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Let the Inverse Demand Curve for a Monopolist's Product Be P=1002QP = 100 - 2 Q

Question 63

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Let the inverse demand curve for a monopolist's product be P=1002QP = 100 - 2 Q and the marginal cost of production be constant at MC=10M C = 10 . Which of the following is the optimal two-block tariff for the firm?


A) P1=$70;Q1=15;P2=$40;Q2=30P _ { 1 } = \$ 70 ; Q _ { 1 } = 15 ; P _ { 2 } = \$ 40 ; Q _ { 2 } = 30
B) PI=$60;Q1=20;P2=$30;Q2=15P _ { I } = \$ 60 ; Q _ { 1 } = 20 ; P _ { 2 } = \$ 30 ; Q _ { 2 } = 15
C) P1=$80;Q1=10;P2=$40;Q2=15P _ { 1 } = \$ 80 ; Q _ { 1 } = 10 ; P _ { 2 } = \$ 40 ; Q _ { 2 } = 15
D) P1=$55;Q1=22.5;P2=$55;Q2=22.5P _ { 1 } = \$ 55 ; Q _ { 1 } = 22.5 ; P _ { 2 } = \$ 55 ; Q _ { 2 } = 22.5

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