Which of the Following Statements Applies to a Single-Price Monopolist

question 266

Multiple Choice

Which of the following statements applies to a single-price monopolist?

• A) In order to maximize profits, the monopolist will produce an amount of output that lies in the elastic range of its demand.
• B) In order to maximize profits, the monopolist will produce an amount of output that lies in the inelastic range of its demand.
• C) In order to maximize profits, the monopolist will produce where its demand is unit elastic.
• D) In order to maximize profits, the monopolist will produce an amount of output in the inelastic range of its supply.

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Definitions:

Socially Optimum

The most desirable level of output or activity from a societal perspective, balancing costs and benefits to achieve maximum social welfare.

Coal Mine Pollution

The release of harmful substances into the environment as a result of coal mining activities, affecting air, water, and soil quality.

Automobile Emissions

The pollutants released into the atmosphere by motor vehicles, including carbon monoxide, nitrogen oxides, and hydrocarbons.

Specific Tax

A fixed amount imposed by the government on a product, per unit of quantity.