Multiple Choice
A profit-maximizing monopolist has the cost schedule c(y) = 40y. 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 $21 for every unit that she sells. Giving her the subsidy would make her
A) decrease her price by $49.
B) decrease her price by $28.
C) decrease her price by $10.50.
D) decrease her price by $21.
E) leave her price unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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