Monopolist faces linear demand

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1. Suppose that a monopolist faces linear demand given by Q(p)=1000-5p

The monopolist also pays a marginal cost of $10 for each unit produced. What is the optimal quantity that the monopolist will charge to maximize its profits?

  1. 450
  2. 475
  3. 500
  4. 525

2. Suppose that a monopolist faces linear demand given by Q(p)=1000-5p

The monopolist also pays a marginal cost of $10 for each unit produced. What is the optimal price that the monopolist will charge to maximize its profits?

  1. $95
  2. $100
  3. $105
  4. $110

Reference no: EM132191824

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