A Profit-Maximizing Monopoly Faces an Inverse Demand Function Described by the Equation

question 14

Multiple Choice

A profit-maximizing monopoly faces an inverse demand function described by the equation p(y) = 90 - y and its total costs are c(y) = 8y, where prices and costs are measured in dollars. In the past it was not taxed, but now it must pay a tax of 8 dollars per unit of output. After the tax, the monopoly will

• A) increase its price by 4 dollars.
• B) leave its price constant.
• C) increase its price by 8 dollars.
• D) increase its price by 12 dollars.
• E) None of the above.

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Definitions:

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A severe injury to the skin and underlying tissue, characterized by extensive damage or necrosis, sometimes revealing underlying muscles or bone.

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The removal of fluid, waste, or other substances from a body part, wound, or other area, often through natural or surgical means.

Hospitalization

The process of admitting a patient to a hospital for treatment, observation, or surgery, typically involving an overnight stay.

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A term describing a wound appearance that indicates healthy granulation tissue and potential for successful healing, characterized by a bright red color.