A monopolist faces the inverse demand curve P = 60 - Q. It has variable costs of Q2 so that its marginal costs are 2Q, and it has fixed costs of 30. At its profit maximizing output level, the monopoly's average cost is
A) 11.
B) 13.
C) 17.
D) 21.5.
C
You might also like to view...
As more labor is hired in the short run, diminishing returns are observed because:
A. The new workers are lazy. B. The new workers have less capital and land to work with. C. All the workers begin to socialize more and work less. D. The new workers are less skilled.
Hospitals announce that there are not enough nurses available to keep them fully staffed. Economically speaking, what does this announcement mean?
A) The market wage for trained nurses is currently above the equilibrium wage. B) There is currently a surplus of nurses in this market. C) The market wage for nurses will eventually rise to the market clearing wage. D) The market will adjust very rapidly to correct this imbalance because anyone can be a nurse without any training.
After a price floor of $23 is placed on the market in the graph shown, which area represents total surplus?
A. A B. A + B + C + E + F C. A + B + E D. B + C + E + F
The most likely substitute good for hot dogs would be:
A. ketchup. B. burgers. C. potato chips. D. a plate.