A Firm with Market Power Faces the Demand Function Q

question 49

Multiple Choice

A firm with market power faces the demand function q = 1,000 - P. The firm's total cost function is TC(q) = 5q + q² + 500. If the firm behaves as a single-price monopoly, the firm's optimal price is $____.

• A) 751.25
• B) 510.45
• C) 326.75
• D) 248.75

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Definitions:

Centralization

The organizational structure where decision-making authority is concentrated at the top levels of management and little autonomy is given to lower levels.

Across Cultures Competency

The capacity to comprehend, converse with, and successfully engage with individuals from diverse cultural backgrounds.

Eureka

An exclamation used to express delight on finding or discovering something.

Electrolux AB

A leading global appliance company known for its various home and professional-use products, including refrigerators, dishwashers, washing machines, and vacuum cleaners.