A Monopoly Produces Widgets at a Marginal Cost of $10

question 136

Multiple Choice

A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs.It faces an inverse demand function given by P = 50 − Q.What are the profits of the monopoly in equilibrium?

• A) $300
• B) $400
• C) $500
• D) $600

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Definitions:

Substitution

A chemical reaction in which an atom or group of atoms is replaced with a different atom or group of atoms in a molecule.

Specific Rotation

A measure of the degree to which a compound can rotate plane-polarized light, typically expressed in degrees and dependent on concentration, temperature, and wavelength.

Racemization

A process leading to the conversion of an optically active compound into a racemic mixture, where there is an equal proportion of left and right-handed enantiomers.

Substitution

A chemical reaction in which an atom or group of atoms in a molecule is replaced by another atom or group.