The Demand for a Monopoly's Output Is P = 100

question 22

Multiple Choice

The demand for a monopoly's output is p = 100 - Q.The firm's production function is Q = 2L.Which of the following is the firm's demand for labor?

• A) w = 200 - 8L
• B) w = 200 - 4L
• C) w = 100 - L
• D) w = 2L

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Definitions:

Free-rider Problem

A situation where individuals benefit from resources, goods, or services that they do not pay for, which can lead to underproduction or depletion of those resources.

Rivalry

The competitive relationship between firms in the market, striving to gain advantage over each other in terms of sales, market share, or innovation.

Nonexcludable

A characteristic of a good or service whereby it is not possible to prevent people who have not paid for it from having access to it.

Free-rider Problem

A situation in which individuals benefit from resources, goods, or services without paying for them, leading to underprovision of those goods or services.