Rabelaisian Restaurants Has a Monopoly in the Town of Upper

question 13

Multiple Choice

Rabelaisian Restaurants has a monopoly in the town of Upper Glutton. Its production function is Q = 10L, 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 10 + .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) 3,000 meals.
• B) 12,000 meals.
• C) 2,500 meals.
• D) 24,000 meals.
• E) 1,500 meals.

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Definitions:

Activity Tolerance

The level of physical activity that a person can perform without experiencing adverse effects.

Contractures

The permanent tightening of muscles, tendons, or skin that restricts normal movement.

Passive Range

The extent of movement at a joint attained with external assistance, without the active contraction of the patient's muscles.

Active Range

The full motion extent that a joint or body part can achieve through voluntary muscle contraction.