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If a Monopolist Faces a Constant-Elasticity Demand Curve Given by Q

Question 19

Multiple Choice

If a monopolist faces a constant-elasticity demand curve given by Q = 400P -2 and has total costs given by TC = 0.625Q2,its profit-maximizing level of output is:


A) 0.
B) 2.
C) 4.
D) 6.
E) 8.

Correct Answer:

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