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Suppose Acme and Mega Produce and Sell Identical Products and Face

Question 16

Multiple Choice

Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. For a monopolist facing this demand curve, the profit-maximizing quantity is ______ and the profit-maximizing price is ______. A) 50; $2 B) 100; $2 C) 50; $3 D) 100; $1 For a monopolist facing this demand curve, the profit-maximizing quantity is ______ and the profit-maximizing price is ______.


A) 50; $2
B) 100; $2
C) 50; $3
D) 100; $1

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