Globo Public Supply Has $1,000,000 in Assets $\underline{\text{ UNREGULATED }}$ ,Find Globo's Optimal Price

question 12

Multiple Choice

Globo Public Supply has $1,000,000 in assets.Its demand curve is: P = 206 - .20•Q and its total cost function is: TC = 20,000 + 6•Q where TC excludes the cost of capital.If Globo Public Supply is $\underline{\text{ UNREGULATED }}$ ,find Globo's optimal price.

• A)$206
• B)$106
• C)$56
• D)$6
• E)$3

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Definitions:

Minimum Wages

The lowest legal hourly pay that workers can be paid, set by government legislation.

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers.

Prevailing Wage

The average wage paid to employees in a specific area or industry, often determined for purposes of setting minimum wage levels on government contracts.

Black Market Activities

Transactions that take place outside of officially sanctioned channels, often illegal or unregulated by the government.