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spayn [35]
3 years ago
14

If the inverse demand curve a monopoly faces is p = 100 - 2Q, then profit maximization

Business
1 answer:
finlep [7]3 years ago
3 0

Answer:

is achieved when 25 units are produced.

Explanation:

profit is maximum at MR = MC

MR = 100 - 4Q

the MR curve is double sloped than the demand curve

since we were not given the MC;

let MC = 0 , then:

100 - 4Q = 0

4Q = 100

Q = 25

Therefore, The profit maximization is achieved when 25 units are produced.

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