You Are the Manager of a Monopoly That Faces a Demand

question 112

Multiple Choice

You are the manager of a monopoly that faces a demand curve described by P = 63 - 5Q.Your costs are C = 10 + 3Q.The revenue maximizing output is

• A)10/63.
• B)5.
• C)6.3.
• D)none of the statements associated with this question are correct.

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Definitions:

Labor Supply

The total hours that workers wish to work at a given wage rate, or the workforce available for employment.

Payroll Tax

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff, used to fund social security and other government programs.

Corporate Income Tax

A tax imposed on the net income (profit) of corporations, calculated at a corporate tax rate.