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A profit-maximizing monopoly firm with a demand curve P = 50 − Q is a perfect pricediscriminator. If it has marginal costs of Rs. 10/unit and fixed costs of Rs. 30, it will produce_____ units of output and will make______ profit.

Question:

A profit-maximizing monopoly firm with a demand curve P = 50 − Q is a perfect pricediscriminator. If it has marginal costs of Rs. 10/unit and fixed costs of Rs. 30, it will produce_____ units of output and will make______ profit.

A.

40; Rs. 400

B.

40; Rs. 770

C.

20; Rs. 370

D.

20; Rs. 400

Answer» b. 40; Rs. 770

Note: The above multiple-choice question is for all general and Competitive Exams in India