If the Inverse Demand Curve a Monopoly Faces Is P

question 38

Multiple Choice

If the inverse demand curve a monopoly faces is p = 100 - 2Q,and MC is constant at 16,then profit maximization

• A) is achieved when 21 units are produced.
• B) is achieved by setting price equal to 21.
• C) is achieved only by shutting down in the short run.
• D) cannot be determined solely from the information provided.

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Definitions:

Enthymeme

A rhetorical version of a syllogism missing one of the premises or the conclusion, but implied by the argument.

Validly Completed

Refers to a logical argument that is structured correctly and follows the principles of logic, thus leading to a true conclusion if the premises are true.

Distributed

In logic, refers to a term in a categorical proposition that is used to assert something about every member of the category it represents.

Proposition

A formal statement or proposition in logic or mathematics, proposed for acceptance or rejection.