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Question 113

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Use the following to answer questions :
Scenario: Monopolist
The demand curve for a monopolist is P = 75 -- 0.5Q,and the monopolist's marginal cost curve is defined using the equation MC = 2Q.Assume also that ATC at the profit-maximizing level of production is equal to $12.50.
-(Scenario: Monopolist) Use Scenario: Monopolist.At the profit-maximizing level of output,the profit per unit is:


A) $62.50.
B) $0.00
C) $75.00.
D) $50.00.

Correct Answer:

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