A Monopolist Faces a Constant Marginal Cost of $1 Per

question 59

Multiple Choice

A monopolist faces a constant marginal cost of $1 per unit and has no fixed costs. If the price elasticity of demand for this product is constant and equal to -4, then

• A) to maximize profits, he should charge a price of $4.
• B) he is not maximizing profits.
• C) to maximize profits, he should charge a price of $1.33.
• D) to maximize profits, he should charge a price of $1.25.
• E) None of the above.

Determine the net amount payable to an employee after deductions.

Understand the role and calculation methods of payroll taxes, including SUTA and FUTA.

Recognize internal controls over payrolls and their significance.

Calculate financial ratios, including the quick ratio, to assess a company's liquidity.

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Definitions:

Service Design

The activity of planning and organizing a company's resources, infrastructure, communication, and materials to improve its service quality.

Reduce Costs

Implementing strategies and measures to decrease expenses and improve efficiency in operations.

Pollution-Sensing Devices

Technology used to detect and measure the level of pollutants in the environment.

Decision Tree

A graphical representation used in decision analysis to visually and explicitly represent decisions and decision making.