A Monopolist Faces the Inverse Demand Curve P = 64

question 37

Multiple Choice

A monopolist faces the inverse demand curve p = 64 - 2q. At what level of output is his total revenue maximized?

• A) 24
• B) 26
• C) 8
• D) 32
• E) 16

---

Definitions:

Sovereign Powers

The ultimate authority or power of a state to govern itself or another state, including making and enforcing laws, without external interference.

Central Government

The primary government authority of a nation, responsible for national policy and administration.

Federalism

A system of government in which power is divided between a central authority and constituent political units, like states, ensuring a degree of self-governance.

Written Constitution

A formal document defining the nature, functions, and limits of a government or another institutional structure.