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A Monopolist Faces the Inverse Demand Function Described by P

Question 9

Multiple Choice

A monopolist faces the inverse demand function described by p = 50 - 4q, where q is output.The monopolist has no fixed cost and his marginal cost is $5 at all levels of output.Which of the following expresses the monopolist's profits as a function of his output?


A) 50 - 4q - 5
B) 50 - 8q
C) 45q - 4q2
D) 50q - 4q2 - 5
E) None of the above.

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