A monopolist, who can produce output at a cost of Rs. 20 per unit, faces an inverse demand curve given by . The profit maximizing price for the monopolist is
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1 markMicroeconomicsMonopoly and price discriminationMonopoly equilibrium and marginal revenueModerateabout 2 min
DSE 2011 Question 12: Monopoly and price discrimination
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A monopolist, who can produce output at a cost of Rs. 20 per unit, faces an inverse demand curve given by p=60-2q. The profit maximizing price for the monopolist is (A) Rs. 40 (B) Rs. 20 (C) Rs. 30 (D) Rs. 60
Monopoly and price discrimination has come up 128 times in 7 exams since 2004.
What this question tests
This question is on Monopoly equilibrium and marginal revenue, part of Monopoly and price discrimination in Microeconomics.
How a monopolist sets price and output where marginal revenue equals marginal cost.
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