Using Time-Series Data,the Demand Function for a Profit-Maximizing Monopolist Has

Multiple Choice

Using time-series data,the demand function for a profit-maximizing monopolist has been estimated as where is the amount sold,P is price,M is income,and is the price of a related good.The estimated values for M and in 2014 are $25,000 and $200,respectively.The short-run marginal cost curve for this firm has been estimated as: Total fixed cost is forecast to be $500,000 in 2016.What is the profit-maximizing or loss-minimizing) level of production?

A) 0 units,the firm should shut down.
B) 1,000 units
C) 1,800 units
D) 2,000 units
E) 8,000 units