A monopolist with constant average and marginal cost equal to 8 ...

[jlmhmf]

A monopolist with constant average and marginal cost equal to 8 (AC = MC = 8) faces demand Q = 100 - P, implying that its marginal revenue is MR = 100 - 2Q. Its profit maximizing quantity is
 a. 8
  b. 46
  c. 50
  d. 92

Question 2

Suppose a man and a woman are in love and care for the other's happiness as well as their own consumption. Suppose the woman is more selfish than the woman UM = CM1/2 UW1/2 UW = CW2/3 UM1/3 They will maximize the joint happiness (UM + UW) where
 a. CM = 100; CW = 0
  b. CW = 100; CM = 100
  c. 50 < CM < 100; 0 < CW < 50
  d. 50 < CW < 100; 0 < CM < 50

[brittiany.barnes]

Answer to Question 1

b

Answer to Question 2

d

[jlmhmf]

Thank you

[brittiany.barnes]

Happy to help you