Refer to the graph and assume marginal costs are constant an
Refer to the graph and assume marginal costs are constant and always equal to $10. The demand curve is linear. If Burrito Bill happens to be a successful perfectly discriminating monopolist, his profit will be:
A. $25
B. $75
C. $50
D. $100
E. We do not have enough information to answer this question
Solution
C.$50 (Explanation: $10 x10 /2)
