Post Utme Unilag 2022 Economics Question 22

Practice objective / multiple choice question 22 from the 2022 Post Utme Unilag Economics examination.

Post Utme Unilag 2022 Economics Objective / Multiple Choice
Question 22 POST_UTME_UNILAG • 2022 • ECONOMICS • objective

A monopolist faces a demand curve with the following equation: Qd = 100 - 2P. The monopolist's marginal \cost curve is given by MC = 10 + 2Q. What is the monopolist's profit-maximizing price and quantity?

Answer Options

Correct Answer A. The profit-maximizing price is $20 and the profit-maximizing quantity is 40 units.
B. The profit-maximizing price is $30 and the profit-maximizing quantity is 60 units.
C. The profit-maximizing price is $40 and the profit-maximizing quantity is 80 units.
D. The profit-maximizing price is $50 and the profit-maximizing quantity is 100 units.
Correct Answer
A
Correct Option:
The profit-maximizing price is $20 and the profit-maximizing quantity is 40 units.

About This Question

This is Post Utme Unilag 2022 Economics Question 22. It is one of the objective questions from the 2022 Post Utme Unilag Economics examination.

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