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A Monopolist Faces an Inverse Demand Curve P=3006QP = 300 - 6 Q

Question 35

Multiple Choice

A monopolist faces an inverse demand curve P=3006QP = 300 - 6 Q and has a constant marginal cost of 20. The IEPR formula for this monopolist could be stated in the following way:


A) p20p=(1p/6) \frac { p - 20 } { p } = \left( \frac { 1 } { p / 6 } \right)
B) p20p=300pp\frac { p - 20 } { p } = \frac { 300 - p } { p }
C) p20p=P300P\frac { p - 20 } { p } = \frac { P } { 300 - P }
D) p20p=P(Q/6) \frac { p - 20 } { p } = - P ( Q / 6 )

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