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Consider a monopolist attempting to engage in limit pricing with total costs C(O) = 100 - 20. The market inverse demand for its product is P100 - 20. Curently, the monopolist producer 30 units of output. Assuming the potential entrant has the same cost structure as the incumbent monopolist, is it profitable for the entrant to produce 10 units of output? Multiple Choice no, since the market price of 520 is less than the average total cost of producing 10 units yes since the market pnce of S20 is greater than the nverage total cost of producing units yes, since the market price of $50 is greater than the average total cost of producing 10 units O, since the man et pnce of 50s than the average total cost of producing 10 units Consider a monopolist attempting to engage in limit pricing with total costs C(q) = 100 - 20. The market inverse) demand for its product is P = 100 - 20. Currently the monopolist produces 30 units of output. Assuming the potential entrant has the same cost structure as the incumbent monopolist, is it profitable for the entrant to produce 10 units of output? Multiple Choice no, since the market price of $20 is less than the average total cost of producing 10 units yes, since the market price of $20 is greater than the average total cost of producing to units yes since the market price of $50 is greater than the average total cost of producing to its C no since the market price of $50 is less than the average total cost of producing 10 units

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