Table 14-1 -Refer to Table 14-1.Assume This Monopolist's Marginal Cost Is Constant

question 268

Multiple Choice

Table 14-1

-Refer to Table 14-1.Assume this monopolist's marginal cost is constant at $12.What quantity of output (Q) will it produce and what price (P) will it charge?

• A) Q = 4,P = $29
• B) Q = 4,P = $26
• C) Q = 5,P = $23
• D) Q = 7,P = $17

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Definitions:

Output

The quantity of goods or services produced in a given period by a firm, industry, or country.

Unit of Labor

A measurement in economics referring to one hour of work or its equivalent output by a worker.

Unit of Capital

The smallest divisible amount of capital that can be invested in or allocated to a project or investment.

Stamping Press

A machine used in manufacturing to shape or cut materials by deforming them with a die and high pressure.