A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P = 40 -Q and a 50 percent chance it will be P = 60 - Q. The marginal cost of the firm is MC = 3Q. The expected profit-maximizing price is Multiple Choice O O $10. $20. $30. $40.

A price taker   options:   is a seller who can set whatever price they want.   is a seller who has no control over the price they charge.   is a buyer who has no control over the price they pay.   is common in a monopoly.

A monopoly company has an average variable cost of $6 average fixed cost of $8, marginal cost of $9, and elasticity of demand -4. In the short run, the company will: set P=$9. earn negative profit so shut down earn negative profit but still produce. set P-$12. set P=$14. earn positive profit. set P-$6. earn zero profit.

How do you find the profit maximizing PRICE (not level of output) on a graph for a monopoly with demand, marginal revenue, marginal cost, and average total cost curves. Group of answer choices Find the minimum point on the ATC curve and go straight over to the price axis. Find the point where MR = MC and go straight over to the price axis. Find the point where MR = MC, go straight up until you hit the demand curve, and then go straight over to the price axis. Find the point where demand hits marginal cost and go straight over to the price axis.