Question: 1 6 Multiple Choice 1 point Demand faced by a monopolist is Q = 2 0 - 0 . 5 P . Her marginal cost

16

Multiple Choice

1

point

Demand faced by a monopolist is

Q = 20 - 0.5

.

Her marginal cost is

10 .

Based on this information we can say that:

The optimal production of the monopolist is

Q = 15

The price charged by the monopolist is equal to her marginal cost

The deadweight loss associated with the moropolist's choice of price is less than the product of the difference between her price and marginal cost, multiplied by her optimal quantity

All of the above are correct

1 6 Multiple Choice 1 point Demand faced by a

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