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USE THE FOLLOWING INFORMATION FOR THE NEXT TWO QUESTIONS: A monopolist faces the following inverse demand curve, marginal revenue curve, total cost curve, and marginal
USE THE FOLLOWING INFORMATION FOR THE NEXT TWO QUESTIONS:
A monopolist faces the following inverse demand curve, marginal revenue curve, total cost
curve, and marginal cost curve for its product:
P = 200 - 0.5Q, MR = 200 - Q,
TC = 105Q, MC = 105.
Suppose you have no information about the monopolist's costs (other than knowing that the marginal cost is not negative). Of the following prices, which one cannot be profit maximizing? (round to the nearest penny)
Group of answer choices
a. $105
b. None of the other choices is correct
c. $125
d. $152.50
e. $95
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