If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then profit maximization is achieved when the monopoly sets price equal to
A) 16.
B) 21.
C) 25.
D) 58.
D
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In the figure above, at the allocatively efficient level of computer production consumers are willing to give up
A) 0 televisions per computer. B) between 0 and 3 televisions per computer. C) 3 televisions per computer. D) more than 3 televisions per computer.
Which of the following policies is designed specifically to directly promote technological change in an economy?
A) laws to strengthen property rights B) government subsidization of research and development C) tax incentives to promote investment in 401K plans D) a vaccination program to combat infectious diseases
Which of the following would cause an economy to produce at a point inside its production possibilities curve?
A) the efficient allocation of all factors of production B) population growth C) unemployment and an inefficient use of available resources D) capital accumulation
Expenses that a firm does not have to pay out of pocket are
A) wages of employees. B) taxes. C) implicit costs. D) explicit costs.