Firm a Is a Monopoly

question 81

Multiple Choice

Firm A is a monopoly.The demand for its output is p = 90 - Q.Production is such that Q = L.Firm A hires only unionized labor.The marginal cost to the union is $10 per unit of labor.The union will sell

• A) 20 units of labor at a wage of $10.
• B) 20 units of labor at a wage of $40.
• C) 20 units of labor at a wage of $50.
• D) 20 units of labor at a wage of $70.

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Definitions:

Selling Activities

Actions undertaken by a company to promote and sell its products or services, including advertising, sales promotions, and personal sales.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

GAAP Estimate

An accounting estimate made following Generally Accepted Accounting Principles guidelines.

Prior-Period Adjustment

Corrections made to an organisation’s financial statements for errors found in the financials of preceding periods.