Multiple Choice
Suppose a monopolist's demand curve is P = 60 - Q,and its cost function is C = 10Q + 50 so its marginal cost is 10.If a governmental agency wished to set the price so that it created the smallest deadweight loss without causing the monopolist to have negative economic profits (thus shutting down) ,that price would be
A) $10.00.
B) $11.02.
C) $14.57.
D) $35.00.
Correct Answer:
Verified
Correct Answer:
Verified
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