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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
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Lean Burger's drive through receives 20 customers in every ten minutes of business time.
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We never entertained the possibility that more than one market failure might exist simultaneously.
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