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Managerial Economics · End Term · 28 Apr 2024 · January 2024 term · Set QDB3

Question 4: What are the monopolist’s profit-maximizing price and qua…

Question 4

+2 marksOne 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 4 of 41 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 28 Apr 2024, in the January 2024 term (IIT M DEGREE AN EXAM QDB3 28 Apr 2024). It carries 2 marks.

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