Scenario $10\mathrm{.}2$:

A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product:

$Q=200-2P$

$MR=100-Q$

$TC=5Q$

$MC=5$

Refer to Scenario $10\mathrm{.}2.$ What level of output maximizes total revenue?

A$)0$

B$)90$

C$)95$

D$)100$

E$)$ none of the above

Answer: D

Diff: $2$

Section: $10\mathrm{.}1$

Refer to Scenario $10\mathrm{.}2.$ What is the profit maximizing level of output?

A$)0$

B$)90$

C$)95$

D$)100$

E$)$ none of the above

Answer: C

Diff: $2$

Section: $10\mathrm{.}1$

Refer to Scenario $10\mathrm{.}2.$ What is the profit maximizing price?

A$)$ $$95\mathrm{.}00$

B$)$ $$5\mathrm{.}00$

C$)$ $$52\mathrm{.}50$

D$)$ $$10\mathrm{.}00$

Answer: C

Diff: $2$

Section: $10\mathrm{.}1$

Refer to Scenario $10\mathrm{.}2.$ How much profit does the monopolist earn?

A$)$ $$4512\mathrm{.}50$

B$)$ $$4987\mathrm{.}50$

C$)$ $$475\mathrm{.}00$

D$)$ $$5\mathrm{.}00$

Answer: A

Diff: $2$

Section: $10\mathrm{.}1$

Refer to Scenario $10\mathrm{.}2.$ Suppose that a tax of $$5$ for each unit produced is imposed by state government. What is the profit maximizing level of output?

A$)0$

B$)90$

C$)95$

D$)100$

E$)$ none of the above

Answer: B

Diff: $2$

Section: $10\mathrm{.}1$