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A Monopoly Produces Widgets at a Marginal Cost of $10

Question 136

Multiple Choice

A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs.It faces an inverse demand function given by P = 50 − Q.What are the profits of the monopoly in equilibrium?


A) $300
B) $400
C) $500
D) $600

Correct Answer:

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