Question: A profit - maximizing monopolist faces a demand function given by q = 3 0 2 p , where p is the price of her

A profit-maximizing monopolist faces a demand function given by q =
302p, where p is the price of her output in dollars. She has a constant
marginal cost of $5 per unit of output. In an effort to induce her to
increase her output, the government agrees to pay her a subsidy of $4
for every unit that she produces. She will
(a) decrease her price by $2 per unit.
(b) decrease her price by $4 per unit.
(c) decrease her price by $3 per unit.
(d) decrease her price by $1 per unit.
(e) not change her price.

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