Suppose a monopolist’s demand curve is P = 60 – Q, its cost function i

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 so that it created the smallest deadweight loss without causing the monopolist to have negative economic profits, this price would be

A) $10.00.
B) $11.02.
C) $14.57.
D) $35.00.

ANSWER

B