Refer to the information provided in Table 13.4 below to answer the question(s) that follow.
Table 13.4Price ($)Quantity20.00118.00216.00314.00412.00510.006 8.007Refer to Table 13.4. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $8 per unit of providing the product, then the monopoly maximizes its profits by charging ________ per unit and selling ________ units of output.
A. $10; 6
B. $18; 2
C. $14; 4
D. $12; 5
Answer: C
You might also like to view...
The biases in the CPI include the
A) old goods, unemployment, and inflation biases. B) new goods, quality change, and substitution biases. C) old goods, new goods, and quality change biases. D) substitution, new goods, and old goods biases.
The notion that expectations will be identical to optimal forecasts using all available information is known as ________
A) adaptive expectations B) irrational expectations C) rational expectations D) tertiary expectations
Which of the programs below would not transfer wealth from young to old generations?
a. Taxes are reduced as a result of cutting expenditures on education. b. Taxes are raised to improve government infrastructure such as roads and bridges. c. Taxes are raised to provide more generous Social Security benefits. d. Taxes are raised to provide more generous Medicare benefits.
Firms have an incentive to substitute capital for labor as the
A. price of labor decreases. B. price of labor increases. C. marginal product of labor increases. D. price of capital increases.