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)

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 perfec

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