4. A monopolist has constant marginal costs at Re 1 per unit, and zero fixed costs. It faces the demand curve

D(p) =100/P ;p<=20 where p is price.

0 ;p > 20

What is the profit maximizing choice of output?

(a) 20

(b) 5

(c) 1/99

(d) 10

S. If the government could set a price ceiling on the above monopolist (in Question No. 4)

in order to force it to act as a competitor, what price should it set?

(a) 10

(b) 20

(c) 1

(d) None of the above

11. Consider five urns numbered 1 to 5, where each urn contains 10 balls. Urn 1 has i

defective balls and (10 - i) nondefective balls. In an experiment, an urn is selected at

random, and then a ball is selected at random from that urn. What is the probability

that a defective ball is selected? If the ball is defective, what is the probability that it

came from urn 2?

(a) 7/10; 2/5

(b) 3/10; 2/15

(c) 1/5; 3/25

(d) 3/5; 2/5

Need to confirm if the answers for Q4 AND Q5 are options (b) 5 and option (c) 1 respectively.

And need detailed solution for Q11