A Monopolist Has a Marginal Cost of $4 and No

Multiple Choice

A monopolist has a marginal cost of $4 and no fixed cost.It faces the following inverse demand curve: p = 40 - q.The monopolist can introduce a new packaging for its product.Such new packaging does not alter the marginal cost.It makes the product more attractive for the consumer,and it would lead to a new inverse demand curve p = 40 - 0.5q.What is the maximum amount that the monopolist would be willing to invest in this new packaging project?

A) $245
B) $324
C) $420
D) It cannot be determined.