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A monopolist faces the inverse demand function described by p = 100-2q


A monopolist faces the inverse demand function described by p = 100-2q, where q is output. The monopolist has no fixed cost and his marginal cost is $20 at all levels of output. What is the monopolist's profit as a function of his output? 

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Answer #1

Answer
Option 3

the marginal cost is constant and there is no fixed cost so the average total cost is equal to marginal cost
total cost =ATC*q=20q
Total revenue =P*q


Profit=TR-TC

Profit function is


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