Answer: 5
Explanation:
From the question, we are informed that the marginal cost is constant and equal to 50 and marginal revenue equals 100 - 10Q.
For a profit-maximizing monopolist, we should note that the marginal revenue will be equated to the marginal cost. Therefore:
100 - 10Q = 50
100 - 50 = 10Q
50 = 10Q
Q = 50/10
Q = 5
Therefore, a profit-maximizing monopolist will set quantity equal to 5.
