A Monopolist Has the Total Cost Function C(q) = 800

question 35

Multiple Choice

A monopolist has the total cost function c(q) = 800 + 8q. The inverse demand function is 80 - 6q, where prices and costs are measured in dollars. If the firm is required by law to meet demand at a price equal to its marginal costs,

• A) the firm's profits will be zero.
• B) the firm will lose $400.
• C) the firm will make positive profit but not as much profit as it would make if it were allowed to choose its own price.
• D) the firm will lose $800.
• E) the firm will lose $480.

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Definitions:

Optimal Wellness

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity, where an individual or group achieves a balance of health habits, mental stability, and social happiness.

System Variables

Components or factors within a system that can change and affect the system's behavior and outcomes.

Client Variables

Factors that can influence the behavior, experiences, and outcomes for clients receiving services, including their background, personality, and current situation.

Negentropy

The process of system organization that increases order and reduces entropy, essentially referring to structures becoming more ordered.