A Profit-Maximizing Monopolist Has the Cost Schedule C(y) = 20y

A profit-maximizing monopolist has the cost schedule c(y) = 20y. The demand for her product is given by , where p is her price. Suppose that the government tries to get her to increase her output by giving her a subsidy of $15 for every unit that she sells. Giving her the subsidy would make her

A) decrease her price by $7.50.
B) decrease her price by $15.
C) decrease her price by $20.
D) decrease her price by $35.
E) leave her price unchanged.

Correct Answer:

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