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Questions › UoH › UoH 2019 › Q67
1 mark, −0.33Microeconomics › Monopoly and price discrimination › Monopoly equilibrium and marginal revenueModerateabout 2 min

UoH 2019 Question 67: Monopoly and price discrimination

A monopolist is trying to maximize total profit. He has the following average revenue function P=63−4QP = 63 - 4QP=63−4Q and the total cost function is given by TC=20+15QTC = 20 + 15QTC=20+15Q where Q is the output and P is the output price. What is the total profit of the monopolist ?

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A monopolist is trying to maximize total profit. He has the following average revenue function P = 63 - 4Q and the total cost function is given by TC = 20 + 15Q where Q is the output and P is the output price. What is the total profit of the monopolist? (A) 63 (B) 124 (C) 155 (D) 529

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.

TestStop has 43 past-paper questions on this subtopic; the nearest in year are below.

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Question from the UoH 2019 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.