If the inverse demand curve a monopoly faces is p = 100 - 2Q, then profit maximization
A) is achieved when 25 units are produced.
B) is achieved by setting price equal to 25.
C) is achieved only by shutting down in the short run.
D) cannot be determined solely from the information provided.
D
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If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $3 and they are charging the profit-maximizing retail price of $9, what is wholesale price of the product?
A) $3 B) $6 C) $12 D) $9
Which of the following legal subjects is most concerned with the economic function of the legal system?
A) criminal law B) public goods C) antitrust legislation D) civil rights
Suppose an oil cartel has an agreement to restrict members' production in order to maintain a price of $30 per barrel. A single cartel member may want to cheat and exceed its quota so that it can:
A. reduce its costs. B. charge higher prices. C. make demand more inelastic. D. earn a bigger profit.
"We should support the market because it is efficient" is an example of:
A. positive economics. B. objective economics. C. negative economics. D. normative economics.