You are the manager of a monopoly that faces a demand curve described by P = 63 ? 5Q. Your costs are C = 10 + 3Q. The revenue-maximizing output is:
A. 10/63.
B. 6.3.
C. 5.
D. None of the answers is correct.
Answer: B
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Explain how the real interest rate could be negative and how this situation would benefit the borrower
What will be an ideal response?
Data shows that United States college students purchase more e-books than German college students. Assuming that all students have identical preferences for e-books and textbooks, what is the likely explanation for this result?
A) Taxes on textbooks are higher in the United States than taxes on textbooks in Germany. B) Taxes on textbooks are lower in the United States than taxes on textbooks in Germany. C) The price of textbooks is cheaper in the United States than textbooks in Germany. D) Both A and C.
The idea that governments can plan growth by setting industrial policies to encourage growth of certain industries:
A. is a proven method for economic growth. B. is controversial. C. has worked for the majority of countries that have tried it. D. None of these is true.
Explanations about what caused the Great Recession differ sharply among economists. The so-called Minsky Explanation involves the following factors, except:
A. A massive euphoric bubble in housing prices that eventually burst B. A huge negative demand shock in the economy C. Flexible average price level in the economy D. Excessive access to home-mortgage loans