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:

40; Rs. 400

40; Rs. 770

20; Rs. 370

20; Rs. 400

Answer» b. 40; Rs. 770

Note:

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

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.