jnu 2010 doubt

[manisha sachdeva]

a monopolist faces the following demand function
d(P) = 10 for p in the interval (0,10]
       = 20-p for p in the interval (10,20)
        =0 for p in the interval [20,infinity)

now suppose that the monopolist has zero variable cost of production.however if it produces any positive amount it must incur a fixed cost of rs 50.
what is the optimal monopoly price?

[bhawna]

Since monopoly in interested in maximising profit.
If you equate MR=MC calculating MR from d (p)= 20-p you get MR = 20-2q equate it to 0 nd you will get quantity as 10 nd at quantity 10 he shall charge price=10 so I think option should be B

[The Villain]

What are the options...u can solve it through them.

[ViV]

work through options
P= 15 and D= 5 TR= 75, TC = 50, Profit = 25
P=10 and D=10, TR =100,TC=50, Profit = 50
P=5 and D =10, TR = 50,TC = 50, Profit = 0
So (b) is the answer.
@ Manisha your every question's answers I am giving you using options