Scenario: Tobac Co

question 120

Multiple Choice

Scenario: Tobac Co. is a monopolist in the cigarette market in Nicotiana Republic, where the U.S. dollar is used as the official currency. The firm faces the demand curve shown below. The firm has a constant marginal cost of $2.00 per pack. The fixed cost of the firm is $50 million. To answer the questions below, it is useful to know that the equation of the (inverse) demand curve is P = 8 - 0.04Q, where Q is the quantity demanded (in millions of packs) and P is the price per pack (in $) . Also, you should draw in the marginal revenue curve.

-Refer to the scenario above.The firm's profit is maximized when the quantity sold is ________ packs.

• A) 50 million
• B) 75 million
• C) 100 million
• D) 125 million

---

Definitions:

Meiosis

A type of cell division that reduces the chromosome number by half, resulting in the production of four haploid cells, crucial for sexual reproduction.

Diploid Chromosome Number

The total number of chromosomes in a diploid cell, which includes two sets of chromosomes, one from each parent.

Gamete

A mature haploid male or female germ cell which is able to unite with another of the opposite sex in sexual reproduction to form a zygote.

Sister Chromatids

Identical copies of a chromosome that are connected by a centromere and separated during cell division.