Exhibit 8-3  Demand and Cost Curves for GeneTech, a Monopolist

question 44

Multiple Choice

Exhibit 8-3  Demand and cost curves for GeneTech, a monopolist  with a patented vaccine

In Exhibit 8-3, how much vaccine should GeneTech produce to maximize its profit?

• A) 300 doses per hour.
• B) 400 doses per hour.
• C) Between 400 and 500 doses per hour.
• D) 500 doses per hour.

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Definitions:

Blinking

A rapid, involuntary action involving the immediate opening and closing of the eyelids to lubricate and protect the eye.

Meter Stick

A measuring stick one meter long, used for measuring lengths or distances.

Peripheral Nervous System

The portion of the nervous system that consists of nerves and ganglia outside of the brain and spinal cord.

Myelin

The fatty substance that surrounds and insulates the axons of some neurons, enhancing the speed of electrical signal transmission.