A Monopolist Faces the Following Demand Curve

question 403

Multiple Choice

A monopolist faces the following demand curve:

The monopolist has fixed costs of $1,000 and has a constant marginal cost of $2 per unit.If the monopolist were able to perfectly price discriminate,how many units would it sell?

• A) 400
• B) 500
• C) 900
• D) 4,200

Understand the Galatea effect and its application in setting personal performance goals.

Understand the difference between direct and indirect materials and their role in manufacturing.

Comprehend the impact of technology on manufacturing processes, particularly on direct labor and material costs.

Identify components of product costs including direct materials, direct labor, and manufacturing overhead.

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Definitions:

Level Shift

A statistical term describing a sudden change in the mean level of a time series dataset.

Instability

The state of being prone to change, variation, or unpredictability, often in a way that is difficult to control or manage.

Cycle

A sequence of events that repeat in a regular and predictable pattern over time.

Type Error

Mistakes made in statistical hypothesis testing, specifically Type I error (false positive) and Type II error (false negative).