If she charges the same price to all customers what are


Katrien runs a restaurant called the 'Heaven'. Given the popularity and location of the restaurant, she has a monopoly position in the market. The inverse market demand curve is given by Q = 120 - P/2. Katrien has a marginal cost of MC = 4Q and a fixed cost FC = $300. If she charges the same price to all customers, what are Katrien's profit-maximising price PM and quantity QM? [Extra practice: what profit does she make?]

(a) PM= $15; qM = 45 units.

(b) PM= $120; qM = 60 units.

(c) PM= $160; qM = 40 units.

(d) PM= $180; qM = 30 units.

(e) None of the above. 

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Business Economics: If she charges the same price to all customers what are
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