Multiple Choice
Suppose P = 20 − 2Q is the market demand function for a local monopoly.The marginal cost is 2Q.If fixed costs are zero and the firm engages in two-part pricing,the most profits the firm will earn is:
A) $5.
B) $10.
C) $25.
D) $50.
Correct Answer:
Verified
Correct Answer:
Verified
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