Table 15-20 A Monopolist Faces the Following Demand Curve

question 4

Multiple Choice

Table 15-20
A monopolist faces the following demand curve:
-Refer to Table 15-20. If a monopolist faces a constant marginal cost of $10, how much output should the firm produce in order to maximize profit?

• A)2 units
• B)3 units
• C)4 units
• D)5 units

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Definitions:

Reality Principle

A psychoanalytic concept that refers to the ability of the mind to assess the external world and act upon it accordingly, rather than purely on the basis of the pleasure principle.

Instinctual Needs

Fundamental, innate drives or motivations necessary for survival, such as hunger or reproduction.

Pleasure Principle

The driving force of the id that seeks immediate gratification of all desires, wants, and needs.

Forbidden Impulse

Refers to an unconscious desire or thought that is deemed unacceptable or taboo by societal standards, often suppressed or repressed.