Castor Corp

question 57

Multiple Choice

Castor Corp.produces three products,and is currently facing a labor shortage - only 3,000 hours are available this month.The selling price,costs,labor requirements,and demand of the three products are as follows: How many of each product should be sold during the labor shortage to maximize profit?

• A)2,000 of Product A,0 of Product B,and 0 of Product C.
• B)1,000 of Product A,500 of Product B,and 0 of Product C.
• C)0 of Product A,1,000 of Product B,and 0 of Product C.
• D)1,000 of Product A,2,000 of Product B,and 500 of Product C.

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Definitions:

Natural Monopoly

A market condition in which a single company can supply a product or service at a lower cost than any potential competitor, leading to a dominant position that discourages others from entering the market.

Monopoly Power

The ability of a single seller to control market prices and exclude competitors within a particular industry.

Antitrust Policy

Government regulations designed to promote competition and prevent the formation of monopolies or anti-competitive practices.

Price-Fixing

An illegal agreement among competitors to set prices, establish production quotas, or engage in other practices that eliminate or reduce competition within an industry.