Rabelaisian Restaurants Has a Monopoly in the Town of Upper

question 11

Multiple Choice

Rabelaisian Restaurants has a monopoly in the town of Upper Glutton. Its production function is Q = 30L, where L is the amount of labor it uses and Q is the number of meals produced. Rabelaisian Restaurants finds that in order to hire L units of labor, it must pay a wage of 30 + .1L per unit of labor. The demand curve for meals at Rabelaisian Restaurants is given by P . The profit-maximizing output for Rabelaisian Restaurants is

• A) 12,000 meals.
• B) 24,000 meals.
• C) 3,000 meals.
• D) 2,500 meals.
• E) 1,500 meals.

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Definitions:

In the Oil Pan

Refers to the storage area at the bottom of an engine where oil collects and is recirculated, crucial for engine lubrication and cooling.

Engine Displacement

The total volume of air/fuel mixture an engine can draw in during one complete engine cycle, measured in liters or cubic inches, indicating the engine's size and power potential.

Cubic Millimeters

A unit of volume measurement in the metric system, equal to one millimeter by one millimeter by one millimeter, used to quantify very small volumes.

Cubic Inches

A unit of volume measurement used primarily in the United States, commonly in reference to the displacement volume of engine cylinders.