You Are the Manager of a Monopoly That Faces a Demand

question 134

Multiple Choice

You are the manager of a monopoly that faces a demand curve described by P = 230 − 20Q.Your costs are C = 5 + 30Q.The profit-maximizing price is:

• A) 150.
• B) 90.
• C) 130.
• D) 110.

Identify conditions under which firms in monopolistic competition can earn profits in the short run but break even in the long run.

Understand strategic considerations in different market structures including monopolistic competition and oligopoly.

Understand the roles of neurotransmitters acetylcholine, epinephrine, and norepinephrine in the nervous system.

Differentiate between the anatomical structures and physiological functions of the sympathetic and parasympathetic divisions of the autonomic nervous system.

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Definitions:

Contribution Rate

The contribution margin expressed as a percentage of the unit selling price.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent or salaries.

Net Income

The amount of money left after subtracting all expenses, taxes, and costs from total revenue.

Variable Cost

A cost that varies depending on the level of output or activity, such as materials or labor costs in manufacturing.