(Table: Monopoly) the Monopolist Represented in the Table Has a Constant

question 250

Multiple Choice

(Table: Monopoly) The monopolist represented in the table has a constant marginal cost per unit of $4. The profit-maximizing level of production for this monopolist would be
$\begin{array}{|c|c|}\hline \boldsymbol{Q} & \boldsymbol{P} \\\hline 0 & 90 \\\hline 3 & 81 \\\hline 6 & 72 \\\hline 9 & 63 \\\hline 12 & 54 \\\hline 15 & 45 \\\hline 18 & 36 \\\hline 21 & 27 \\\hline 24 & 18 \\\hline 27 & 9 \\\hline 30 & 0 \\\hline\end{array}$

• A) 9 units.
• B) 12 units.
• C) 15 units.
• D) 18 units.

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Definitions:

Alcoa Case

A significant legal case involving the Aluminum Company of America (Alcoa) which dealt with issues of monopolistic practices and antitrust law.

Conglomerate Merger

A type of merger in which two companies in unrelated businesses combine their operations.

Horizontal Merger

A business consolidation that occurs between firms which operate in the same industry, often leading to a higher market concentration.

Vertical Merger

A merger between two companies operating at different levels within an industry's supply chain.