Using the Following Information to Complete Questions 8 - 11

question 5

Multiple Choice

Using the following information to complete questions 8 - 11.
Top-It-Off Inc. produces gold pen and pencil sets for executives' desks. Revenue and labor productivity data are given in the following table. The components cost $15.00. The wage rate is constant at $7.50 per hour.
-Given the above information, how much output should the firm produce and at what price?

• A) Q = 85, P = 20
• B) Q = 85, P = 45
• C) Q = 75, P = 45
• D) Q = 75, P = 60
• E) None of the Above

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Definitions:

Bilateral Monopoly

A market in which there is a single seller (monopoly) and a single buyer (monopsony).

Monopolist

A single seller in a market who has significant control over the price and supply of a product or service.

Monopsonist

A situation in the market where a single buyer dominates, possessing substantial control over the pricing of a product or service.

Nominal Wage

The wage paid to workers measured in current dollars, without adjustment for inflation.