Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for Fruit of the Loom women's underwear is estimated to be P = 25 ? 3Q (in cents). If the cost to Fruit of the Loom to produce an item of women's underwear is C(Q) = 1 + 4Q (in cents), compute the price Fruit of the Loom should charge for a package of women's underwear.
A. $136.50
B. $1.02
C. $1.09
D. $108.50
Answer: B
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Which statement is true regarding the difference between the demand curves for a monopolistic competitor and a monopolist?
a. A monopolistic competitor’s perceived demand curve is protected by barriers to entry. b. A monopolistic competitor's perceived demand curve is based on product differentiation and number of competitors. c. A monopolist’s perceived demand curve is based on product differentiation and number of competitors. d. A monopolistic competitor's perceived demand curve is the market demand curve.
"Market power" is an expression used to indicate that a firm has
a. no rivals. b. the power to sell a given output at whatever price it chooses. c. some freedom from the rigors of intense competition. d. a monopoly over the product it produces.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to open to trade, the amount consumed domestically would:
A. increase by 35. B. decrease by 90. C. decrease by 35. D. increase by 90.
The firm's shutdown point occurs at an output of
A. 30.
B. 45.
C. 60.
D. 65.