Question: 1. Suppose a monopoly faces demand given by P = 24 Q and has a cost function given by C = 10 + 4Q. (Revenue,

1. Suppose a monopoly faces demand given by P = 24

1. Suppose a monopoly faces demand given by P = 24 Q and has a cost function given by C = 10 + 4Q. (Revenue, R = PQ = (24 OJQ. ) The monopoly maximizes profit by setting MR = MC. Which of the following statements is true. a) At the monopoly solution P = 14 and MR = 4. b) At the monopoly solution consumer surplus is 50. c) At the monopoly solution profits equal 90. d) All of the above. e) None of the above

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