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Managerial Economics · End Term · 13 Apr 2025 · January 2025 term

Question 5: What are the monopolist’s profit-maximizing price and qua…

Question 5

+1 markOne correct option

A monopolist faces the demand curve P = 11 - Q, where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $6 per unit. Answer the given subquestions

What are the monopolist’s profit-maximizing price and quantity?

  1. A

    Profit maximizing price = 2.5 and Profit maximizing quantity = 4500

  2. B

    Profit maximizing price = 8.5 and Profit maximizing quantity = 2500

  3. C

    Profit maximizing price = 4.5 and Profit maximizing quantity = 8500

  4. D

    Profit maximizing price = 5.5 and Profit maximizing quantity = 2500

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Correct answer

  • B

    Profit maximizing price = 8.5 and Profit maximizing quantity = 2500

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Question 5 of 40 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 13 Apr 2025, in the January 2025 term (IIT M IMPROVEMENT AN EXAM QIM3 13 Apr 2025). It carries 1 mark.

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