The Demand for a Monopolist's Output Is 7,000 Divided by the Square

question 6

Multiple Choice

The demand for a monopolist's output is 7,000 divided by the square of the price in dollars that it charges per unit.The firm has constant marginal costs equal to 1 dollar per unit.To maximize its profits, it should charge a price of

• A)1 dollar.
• B)2 dollars.
• C)3 dollars.
• D)1.5 dollars.
• E)2.5 dollars.

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Definitions:

Baroreceptors

Sensory nerve endings found in the walls of arteries and the heart that sense changes in blood pressure.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, often measured as an indicator of heart health.

Cardioregulatory Center

A region of the brain, specifically in the medulla oblongata, that regulates heart rate and blood pressure by coordinating the autonomic nervous and the cardiovascular systems.

Vasodilator Substance

Chemicals that relax and expand blood vessels, increasing blood flow and decreasing blood pressure.