If an unregulated electric company is a monopolist and faces demand of Q = 50 - 10P. It has a constant marginal cost of 1 and must pay an environmental fee to the government of 0.2 per unit of output. In this situation, the profit-maximizing level of output is:
a. 5
b. 10
c. 20
d. 50
c
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At a price of $5, Sam buys 10 units of a product. When the price increases to $6, Sam buys 8 units. Martha says Sam's demand has decreased. Is Martha correct? a. Yes, Martha is correct. Sam's demand decreased from 10 to 8 units. b. No, Martha is incorrect. Sam's demand increased because price increased from $5to $6
c. No, Martha is incorrect. The quantity demanded decreased from 10 to 8 units but his demand remains unchanged. d. No, Martha is incorrect. The quantity supplied to Sam has decreased from 8 units to 10 units but his demand remains unchanged. e. No, Martha is incorrect. Sam's demand has increased, and his quantity demanded has decreased from 10 units to 8 units.
The economic power of large employers has been somewhat offset by the rise of ________.
Fill in the blank(s) with the appropriate word(s).
The real and nominal exchange rates differ in the sense that:
A. the nominal exchange rate is adjusted for price differences between countries and the real is not. B. the nominal exchange rate does not reflect differences in purchasing power between currencies. C. nominal exchange rates are fixed but real rates are flexible. D. the real exchange rate does not express differences in the purchasing power of a currency.
If quantity demanded is greater than quantity supplied
A. the price will fall. B. the price will rise. C. the market is cleared. D. the price is at equilibrium.