Involve a Profit-Maximizing Monopolist $Q _ { d } = 142,000 - 500 P + 6 M - 400 P _ { R }$

question 33

Multiple Choice

Involve a profit-maximizing monopolist. Using time-series data, the demand function for the monopolist has been estimated as
$Q _ { d } = 142,000 - 500 P + 6 M - 400 P _ { R }$
where
$Q _ { d }$ is the amount sold, P is price, M is income, and
$P _ { R }$ is the price of a related good. The estimated values for M and
$P _ { R }$ in 2012 are $25,000 and $200, respectively. The short-run marginal cost curve for this firm has been estimated as:
$M C = 200 - 0.024 Q + 0.000006 Q ^ { 2 }$
Total fixed cost is forecast to be $500,000 in 2015.
-What is the profit-maximizing (or loss-minimizing) level of production?

• A) 0 units, the firm should shut down.
• B) 1,000 units
• C) 1,800 units
• D) 2,000 units
• E) 8,000 units

Comprehend the concept of reactivity in measures and strategies to reduce it.

Identify the four scales of measurement and their characteristics.

Recognize the relevance of convergent and discriminant validity in measuring constructs.

Understand the application of content and face validity in research contexts.

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Definitions:

Inventory Turnover Ratio

Inventory turnover ratio is a financial metric that measures how many times a company's inventory is sold and replaced over a specific period, indicating efficiency in inventory management.

Net Profit Margin

A financial metric showing the amount of each sales dollar left over after all expenses have been paid.

Cash Coverage Ratio

A financial metric used to evaluate a company's ability to pay its debt obligations using its cash and cash equivalents.

Current Liabilities

Obligations of a company that are due to be settled within one year or one operating cycle, whichever is longer.