Suppose a monopolist faces the demand curve shown below. 
If the monopolist's marginal cost is constant and equal to $30, its profit-maximizing level of output is:
A. 50 units.
B. 30 units.
C. 40 units.
D. 20 units.
Answer: D
You might also like to view...
Suppose a player can play 2 possible actions and has 5 possible decision nodes in a sequential game. Then he has 10 possible strategies he can play.
Answer the following statement true (T) or false (F)
If households view a tax cut as temporary, then the tax cut
a. has no effect on aggregate demand. b. has more of an effect on aggregate demand than if households view it as permanent. c. has the same effect as when households view the cut as permanent. d. has less of an effect on aggregate demand than if households view it as permanent.
Suppose Aiyanna's Pizzeria currently faces a linear demand curve and is charging a very high price per pizza and doing very little business. Aiyanna now decides to lower pizza prices by 5 percent per week for an indefinite period of time. We can expect that each successive week:
A. demand will become more price elastic. B. price elasticity of demand will not change as price is lowered. C. demand will become less price elastic. D. the elasticity of supply will increase.
The study of economics is basically about what two things?