You are the manager of a monopoly that faces a demand curve described by P = 10 ? 2Q. Your costs are C = 20 + 2Q. The revenue-maximizing output is:
A. 3.
B. 1.5.
C. 4.
D. None of the answers is correct.
Answer: D
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If your income stays the same and the price level increases, you will buy fewer goods and services due to the
A) interest rate effect. B) real-balance effect. C) open economy effect. D) aggregate balances effect.
In the above figure, no relationship between x and y is shown in Figure
A) A. B) B. C) C. D) D. E) A and Figure B.
During the expansion phase of the business cycle, we would normally expect to see real income ____, price level ____, and unemployment rate ____.
a. increasing; increasing; increasing b. increasing; decreasing; decreasing c. increasing; increasing; decreasing d. falling; increasing; increasing
When production in an economy grows more quickly than the population in that economy, which of the following must be occurring?
A) Real GDP is falling. B) Incomes are growing at a slower rate than the population. C) Real GDP per capita is rising. D) Living standards are falling.