An unregulated electric company is a monopolist and faces demand ...

[futuristic]

An unregulated electric company is a monopolist and faces demand of Q = 50 - 10P. If the company has zero marginal costs, its profit-maximizing price is
 a. 0
  b. 1
  c. 2.5
  d. 5

Question 2

If an unregulated electric company is a monopolist and faces demand of Q = 50 - 10P. It has a constant marginal cost of 1 and must pay an environmental fee to the government of 0.2 per unit of output. In this situation, the profit-maximizing level of output is:
 a. 5
  b. 10
  c. 20
  d. 50

[Alyson.hiatt@yahoo.com]

Answer to Question 1

c

Answer to Question 2

c

[futuristic]

YES! Correct, THANKS for helping me on my review

[atrochim]

Thanks for the timely response, appreciate it