Question
Use the following information to answer the next TWO questions: Suppose market demand facing a monopolist is given by Q=(24-P)/6. 4.If in the short-run the
Use the following information to answer the next TWO questions:
Suppose market demand facing a monopolist is given by Q=(24-P)/6.
4.If in the short-run the price that maximizes the monopolist's profit is the same as the price that maximizes the monopolist's total revenue, which of the following could be the monopolist's short-run total cost function?
A.TC=10+2Q2+5Q
B.TC=5Q
C.TC=Q2+Q3
D.TC=40+2Q
E.TC=20
5.If average cost pricing regulation produces an economically efficient level of output, which of the following could be the monopolist's total cost curve?
A.TC=30+5Q
B.TC=3Q2
C.TC=100Q-5Q2 +3Q3
D.TC=50Q
E.TC=75
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