Scenario 14-4 Suppose a Monopolist Has a Demand Curve That Can Be

question 299

Multiple Choice

Scenario 14-4
Suppose a monopolist has a demand curve that can be expressed as P=90-Q.The monopolist's marginal revenue curve can be expressed as MR=90-2Q.The monopolist has constant marginal costs and average total costs of $10.
-Refer to Scenario 14-4.The profit-maximizing monopolist will have a deadweight loss of

• A) $6,400.
• B) $3,200.
• C) $1,600.
• D) $800.

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Definitions:

Intellectualization

A defense mechanism in which reasoning is used to block confrontation with an unconscious conflict and its associated emotional stress.

Pleasure Principle

The pursuit of gratification that characterizes id functioning.

Primary Process Thought

A term from psychoanalytic theory referring to the unorganized, illogical, and irrational thought characteristic of the unconscious mind.

Reflex

An automatic, involuntary response to a specific stimulus without conscious thought.