The external marginal cost of producing coal is MCexternal = 6Q while the internal marginal cost is MCinternal = 4Q. The inverse demand for coal is given by P = 120 ? 2Q. How much output would a monopoly produce?
A. 15
B. 10
C. 20
D. It cannot be determined because of incomplete information.
Answer: A
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A firm in an oligopolistic industry has the following demand and total cost equations:
P = 600 - 20Q and TC = 700 + 160Q + 15Q2 Calculate: a. quantity at which profit is maximized b. maximum profit c. quantity at which revenue is maximized d. maximum revenue e. maximum quantity at which profit will be at least $580 f. maximum revenue at which profit will be at least $580
It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment
a. True b. False Indicate whether the statement is true or false
Fractional reserve banking began as a search for
A. a different metallic monetary system. B. additional sources of gold. C. different types of borrowers. D. additional profits.
A profit-maximizing monopolistically competitive firm will expand output to the point where:
A. total revenue equals total cost. B. marginal revenue equals marginal cost. C. price equals average total cost. D. price equals marginal cost.