A Monopolist with a Marginal Cost of MC = 20Q

question 4

Multiple Choice

A monopolist with a marginal cost of MC = 20Q faces the inverse demand curve P = 90 - 5Q. The profit-maximizing quantity is _____.

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Particular Organizational Design

A unique configuration of an organization's structures, processes, and systems designed to achieve its goals and address specific challenges.

Professional Bureaucracy

An organizational structure that relies heavily on the expertise and professionalism of its members rather than on strict hierarchies or rules.

Horizontal Specialization

A division of labor where tasks are divided among employees at the same level within an organization, based on skills or expertise.

Mechanistic Structure

A mechanistic structure in an organization is characterized by rigid hierarchy, high levels of formalization, and centralized decision making.