The above figure shows the demand and cost curves facing a monopoly. Maximum profit equals
A) $0.
B) $100.
C) $1,000.
D) $2,500.
D
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Patents stimulate investment
a. by giving inventors an incentive to incur up-front costs of developing new products b. by giving tax breaks to inventors c. by guaranteeing a profit from new products d. by lowering interest rates e. through government payments that cover costs of research and development
Frictional unemployment best defined as
A. Deviation of unemployment from its natural rate B. Unemployment of people who do not want to work. C. Chronic unemployment due to wages not balancing supply and demand D. Unemployment due to individuals search for new job.
Suppose that for a given good demand decreases and supply increases at the same time. If demand decreases by a greater amount than supply increases, then equilibrium price __________ and equilibrium quantity __________ for that good
A) rises; rises B) rises; falls C) falls; rises D) falls; falls
Suppose that a retailer sells 500 six-packs of Dr. Pepper per day at $3.50/six-pack. Also, suppose that the cross-price elasticity between Dr. Pepper and Pepsi is 0.6. Then Dr. Pepper and Pepsi are ________ goods
Fill in the blank(s) with correct word