A Monopolist Faces the Inverse Demand Function Described by P

question 57

Multiple Choice

A monopolist faces the inverse demand function described by p = 50 - 4q, where q is output. The monopolist has no fixed cost and his marginal cost is $5 at all levels of output. Which of the following expresses the monopolist's profits as a function of his output?

• A) 50 - 4q - 5
• B) 50 - 8q
• C) 45q - 4q²
• D) 50q - 4q² - 5
• E) None of the above.

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Definitions:

Organ of Corti

The sensory organ located within the cochlea of the inner ear, responsible for converting sound vibrations into neural signals.

Auditory Nerve

The nerve that carries signals from the inner ear to the brain, allowing us to hear.

Kinesthesis

The ability to perceive the position, movement, and force of muscles, tendons, and joints in the body.

Day-to-Day Activities

Routine actions or tasks that individuals perform on a regular basis, typically related to personal care or everyday chores.