Suppose a monopolist's demand curve is P = 60 - Q,its cost function is TC = 10Q + 50,and its marginal cost is 10.If a governmental agency wished to set the price that maximized social welfare,that price would be
A) $10.00.
B) $11.02.
C) $14.57.
D) $35.00.

Question

Quizplus · Accepted Answer

To maximize social welfare, the price should be set equal to marginal cost. The marginal cost is $10, so the price that maximizes social welfare is $10.

Suppose a Monopolist's Demand Curve Is P = 60 -