You are the manager of a monopoly that faces a demand curve described by P = 230 ? 20Q. Your costs are C = 5 + 30Q. The profit-maximizing output for your firm is:
A. 5.
B. 7.
C. 6.
D. 4.
Answer: A
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According to Keynes, the money demand function
a. did not change as the return on other assets changed. b. changes with output. c. shifts with changes in the public confidence in the economy. d. both b and c. e. all of the above.
In the Cournot model
A) market price is unaffected by the actions of any individual firm. B) firms do not have to worry about the strategies of the other firms. C) firms' profits are independent. D) firms' profits are interdependent.
A supply curve is a:
A. graph that visually displays the supply schedule. B. graph depicting various price-quantity combinations of multiple goods. C. graph that shows the quantities of a particular good or service that producers will sell at one price. D. table that displays various price-quantity combinations of a good or service.
Regulatory commissions may focus on establishing a "fair-return" price to be charged by a monopolist. Under this policy, the monopolist would earn:
a. positive economic profits. b. zero economic profits. c. negative economic profits. d. monopoly profits.