Please provide REASONS AND PROCEDURE on the answer given for each question. I need to understand the procedure to get to the answer given

8.The demand for a monopolist's output is 6,000/(p+2)², wherepis the price it charges. At a price of $3, the elasticity of demand for the monopolist's output is

a.-1.

b.-2.20.

c.-1.20.

d.-1.70.

e.-0.70.

ANS:C

10.The demand for a monopolist's output is 6,000/(p+7)², wherepis its price. It has constant marginal costs equal to $5 per unit. What price will it charge to maximize its profits?

a.$33

b.$12

c.$26

d.$17

e.$5

ANS:D

17.A monopolist has constant marginal costs of $1 per unit. The demand for her output is 1,000/pifpis less than or equal to 50. The demand is 0 ifp>50. What is her profit maximizing level of output?

a.5

b.10

c.15

d.20

e.25

ANS:D

18.The demand curve for the output of a certain industry is linear;q=A-Bp. There are constant marginal costs ofC. For all values ofA,B, andCsuch thatA>0,B>0, and 0<C<A/B,

a.if the industry is monopolized, prices will be exactly twice as high as they would be if the industry were competitive.

b.if the industry is competitive, output will be exactly twice as great as it would be if the industry were monopolized.

c.if the industry is monopolized, prices will be more than twice as high as if the industry is competitive.

d.if the industry is monopolized, output will be more than half as large as it would be if the industry were competitive.

e.None of the above

ANS:B

20.A monopolist faces the demand curveq=90-p/2, whereqis the number of units sold andpis the price in dollars. She has quasi-fixed costs, C, and constant marginal costs of $20 per unit of output. Therefore her total costs areC+20q ifq>0 and 0 ifq=0. What is the largest value ofCfor which she would be willing to produce positive output?

a.$20

b.$2,560

c.$3,200

d.$4,800

e.$3,840

ANS:C

26.An airline has exclusive landing rights at the local airport. The airline flies one flight per day to New York with a plane that has a seating capacity of 100. The cost of flying the plane per day is $4,000+10q, whereqis the number of passengers. The number of flights to New York demanded isq=165-.5p. If the airline maximizes its monopoly profits, the difference between the marginal cost of flying an extra passenger and the amount the marginal passenger is willing to pay to fly to New York is

a.$10.

b.$100.

c.$140.

d.$160.

e.None of the above.

ANS:D

29.A computer software firm has developed a new and better spreadsheet program. The program is protected by copyrights, so the firm can act as a monopolist for this product. The demand function for the spreadsheet is q=50,000-100p. Any single consumer will want only one copy. The marginal cost of producing and distributing another copy and its documentation is just $10 per copy. If the company sells this software at the profit-maximizing monopoly price, the number of consumers who would not buy the software at the monopoly price but would be willing to pay at least the marginal cost is

a.50,000.

b.12,000.

c.14,000.

d.25,000.

e.None of the above.

ANS:D