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A Monopolist Faces Linear Inverse Demand P=a−bQP = a - b Q

Question 52

Multiple Choice

A monopolist faces linear inverse demand P=a−bQP = a - b Q and constant marginal cost, cc . Which of the following gives a correct formula for the monopolist's profit maximizing price?


A) P=(a/b−c) P = ( a / b - c )
B) P=a/2P = a / 2 .
C) P=(a+c) /2P = ( a + c ) / 2
D) P=a/2+cP = a / 2 + c .

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