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"Suppose that demand for a product is P=55-5Q and total cost of production is 5Q+20. What is the profit maximising price?
a. 30
b. 45
c. 35
d. 40
Consider a monopolist with demand curve P= 100-Q/2 . The total cost of production is 10Q + 1500 for positive ouput and 500 if it shuts down production. What is the maximum profit the monopolist can earn (assuming no possibility of price discrimination)?
a. 255,000
b. 25,500
c. 2,550
d. 255
If the demand curve for a monopolist's output is given by the function P = 25 - Q/10, what is its marginal revenue at Q = 5?
a. 24
b. 25
c. 23.5
d. 24.5
Now Assume the theater increases the number of its ads to 250. Should the theater increase its cost following this ad campaign.
Fred's Fashion Accessories of New Jersey produces jewelry for sale in Boston and New York subject.
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As a second alternative, Mrs. Siegal can take pain killers. Each pill costs 50 cents also Mrs. Siegal needs to take 30 pills every month.
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