Use the above figure. If this monopolist was not regulated, the profit-maximizing quantity and price would be
A. Q3 and P2.
B. Q2 and P1.
C. Q4 and P1.
D. Q2 and P3.
Answer: D
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Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?
A) technological advances in digital camera production B) consumers' preferences changed in favor of digital cameras C) the price of film cameras fell D) workers who make digital cameras received a pay raise
Diseconomies of scale are caused by the law of diminishing marginal returns.
Answer the following statement true (T) or false (F)
The phases of a business cycle in order include
A) Peak, recession, trough and expansion. B) Peak, expansion, recession and trough. C) Peak, recession, expansion and trough. D) None of the above.
________: shift in the demand curve caused generally by changes in the prices of complements or substitutes, income, and tastes and preferences
Fill in the blank(s) with correct word