A Monopolist Faces a Demand Function Given by Q =

question 63

Multiple Choice

A monopolist faces a demand function given by Q = 50 -P and has a cost function C =3Q²+ 10Q +
100. If the government imposes a lump sum tax of $100, the monopoly will:

• A)decrease its output.
• B)cease production.
• C)increase its price.
• D)not modify its output.

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Definitions:

Asthenosphere

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Tsunami

A series of large ocean waves caused by underwater earthquakes, volcanic eruptions, or landslides, with the potential for devastating coastal impact.

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The gradual sinking of the ground's surface, often due to natural processes like the compaction of sediment or human activities like the extraction of underground resources.