Suppose P = 20 ? 2Q is the market demand function for a local monopoly. The marginal cost is 2Q. The local monopoly tries to maximize its profits by equating MC = MR and charging a uniform price. What will be the equilibrium price and output?
A. $13.33, 3.33 units
B. $10, 5 units
C. $6.33, 5 units
D. $6.33, 3.33 units
Answer: A
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The Sherman Act of 1890
A) established the corporate income tax. B) prohibited price-setting agreements among sellers. C) required employers to bargain collectively with labor unions. D) set maximum prices railroads could charge interstate shippers. E) set minimum prices railroads could charge without being guilty of unfair trade practices.
The hidden momentum of population growth is caused by
(a) the demographic transition. (b) population age structure. (c) the opportunity cost of a woman's time. (d) children's contribution to income.
Louise Bakery sells cupcakes that have an equilibrium price of $5.00 per cupcake and an equilibrium output of 300 cupcakes. Which of the following is likely to be true when the government imposes a tax of $0.75 per cupcake? a. Producer and consumer surplus will increase. b. Producer and consumer surplus will decline. c. Equilibrium price will decrease
d. Equilibrium output will increase.
A short-run production function was estimated asQ = ?0.002L3 + 0.16L2At 20 units of labor, what is total product?
A. 62 B. 96 C. 41 D. 48 E. 20