Since as a manager of a monopoly that faces a demand curve described by p = 230 - 20q. the profit-maximizing price is option C. 130.
<h3>What is the monopoly about?</h3>
A monopoly is known to be a term that describe a market that does not with the "absence of have competition", and it is one that forms a situation where a given person or firm is the only supplier of a given product of thing
Note that In monopoly, Profit is maximized if MR = MC and where MR = marginal revenue.
So Revenue R = Q * P
= 230Q - 20Q ^2
MR = DR/DQ = 230 - 40Q
In regards to all -profit maximization
MR = MC
230 - 40Q = 30
40Q = 200
Q = 5
Hence: Profit-maximizing Price P:
= 230 - 20 * 5
= 130.
Therefore, Since as a manager of a monopoly that faces a demand curve described by p = 230 - 20q. the profit-maximizing price is option C. 130.
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