Author Question: A monopolist has set her level of output to maximize profit. The firm's marginal revenue is 20, and ... (Read 195 times)

soccerdreamer_17 · **on:** Jul 1, 2018

A monopolist has set her level of output to maximize profit. The firm's marginal revenue is 20, and the price elasticity of demand is -2.0. The firm's profit maximizing price is approximately:

A) 0
B) 20
C) 40
D) 10
E) This problem cannot be answered without knowing the marginal cost.

Question 2

Refer to Scenario 17.2. The lowest level of y that can be set and still have only the high-productivity people meet it is

A) 90.
B) 60.
C) 30.
D) 22.5.
E) 15.