A Monopolist Faces the Inverse Demand Curve P = 60

question 95

Multiple Choice

A monopolist faces the inverse demand curve P = 60 - Q.It has variable costs of Q² so that its marginal costs are 2Q,and it has fixed costs of 30.If a governmental agency imposes an $8 per unit specific tax on output,the deadweight loss from both the monopoly and the tax is

• A) $37.50.
• B) $73.00
• C) $526.50.
• D) $562.50.

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Definitions:

Normally Distributed

Describes a statistical distribution where data points are symmetrically distributed around the mean, showing a bell-shaped curve pattern.

Periodic Review Policy

A method of inventory control where stock levels are checked at fixed intervals and orders are placed accordingly.

CSL (Cycle Service Level)

An inventory management metric that measures the probability that the inventory level will not stock out within one replenishment cycle, typically expressed as a percentage.

Normally Distributed

Normally distributed refers to a statistical distribution where data is symmetrically distributed around the mean, forming a bell-shaped curve commonly seen in many natural and social phenomena.