Suppose a Monopolist Faces the Demand Curve Y^d=1600- 400 P

question 90

Multiple Choice

Suppose a monopolist faces the demand curve Y^d=1600- 400 P. Which of the following is correct?

• A)Profit = 1600P - 400P²- MC
• B)TR = 1600- 400P²
• C)MR = 1600- 200 P
• D)AR = 1600- 200P

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Definitions:

New Goods

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Core CPI

A measure of the underlying trends in the Consumer Price Index, excluding food and energy prices because they can fluctuate widely from month to month.

Consumer Price Index

An index measuring the change over time in the price of a basket of consumer goods and services, often used to assess inflation.

Year 3 Dollars

A term used to adjust financial figures according to inflation or deflation, making them comparable to the value of money in the third year of a specific reference period.