A Monopolist Faces the Demand Curve Q = 90 -

A monopolist faces the demand curve q = 90 - p/2, where q is the number of units sold and p is the price in dollars.She has quasi-fixed costs, C, and constant marginal costs of $20 per unit of output.Therefore her total costs are C + 20q if q > 0 and 0 if q = 0.What is the largest value of C for which she would be willing to produce positive output?

A) $20
B) $2,560
C) $3,200
D) $4,800
E) $3,840

Correct Answer:

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