Question

You are the manager of a monopoly that faces a demand curve described by p = 230 – 20q. your costs are c = 5 30q. the profit-maximizing price is: ________
a) 110.
b) 90.
c) 130.
d) 150.

1. diemkieu
Since as a manager of a monopoly that faces a demand curve described by p = 230 – 20q. the profit-maximizing price is option C. 130.

### What is the monopoly about?

A monopoly is known to be a term that describe a market that does not with the “absence of have competition”, and it is one that forms a situation where a given person or firm is the only supplier of a given product of thing
Note that In monopoly, Profit is maximized if MR = MC and where MR  =  marginal revenue.
So Revenue R =  Q * P
=  230Q – 20Q ^2
MR  =  DR/DQ  =  230 –  40Q
In regards to all -profit maximization
MR =  MC
230 – 40Q =  30
40Q =  200
Q =  5
Hence: Profit-maximizing Price P:
=  230 – 20 * 5
=  130.
Therefore, Since as a manager of a monopoly that faces a demand curve described by p = 230 – 20q. the profit-maximizing price is option C. 130.