A monopolist faces the inverse demand curve P = 60 - Q. It has variable costs of Q2 so that its marginal costs are 2Q, and it has fixed costs of 30. At its profit-maximizing output level, the monopoly's average cost is
A) 11.
B) 13.
C) 17.
D) 21.5.
C
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Answer the next question on the basis of the following national income data for the economy. All figures are in billions of dollars.Personal consumption expenditures$400Government purchases128Gross private domestic investment88Net exports7Net foreign factor income0Consumption of fixed capital43Taxes on production and imports50Compensation of employees369Rents12Interest15Proprietors' income52Corporate income taxes36Dividends24Undistributed corporate profits22Statistical discrepancy0The gross domestic product for the above economy is ________.
A. $623 B. $609 C. $592 D. $584
Luigi is willing to lend Klaus $5,000 for one year at a nominal rate of interest of 7%. Both Luigi and Klaus expect the rate of inflation to be 2% in the next year. What is the real return that Klaus is offering to Luigi?
A. 9% B. 5% C. 7% D. 2%
The unemployment rate is calculated by dividing the number of unemployed and looking for work by the sum of the number employed and the number unemployed and looking for work
Indicate whether the statement is true or false
In less-developed countries with rapid population growth,
a. the standard of living will always rise because population is the key to rising living standards b. the standard of living will always fall c. the standard of living will always remain constant d. the standard of living will fall if population grows faster than output e. will be independent of population growth due to foreign aid payments by rich countries