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A Monopoly Produces Widgets at a Marginal Cost of $8

Question 56

Multiple Choice

A monopoly produces widgets at a marginal cost of $8 per unit and zero fixed costs. It faces an inverse demand function given by P = 38 - Q. What are the profits of the monopoly in equilibrium?


A) $225
B) $120
C) $345
D) None of the statements is correct.

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