Re: DSE DOUBT

Posted by naren on Jun 10, 2015; 5:35pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-DOUBT-tp7597587p7597631.html

dse 2014

A monopolist produces a good with constant marginal cost c>=0. The monopolist sells the entire output to a consumer whose utility consuming x units of good is theta*sprt(x)-t, where t is payment made by consumer to monopolist. If Consumer does not buy from monopolist, she gets 0 utility. Monopolist profit is
A) theta/4c
B) theta^2/4c
C) c*theta^2
D) c*theta/2