Suppose a Private Monopolist Is Supplying a Good That Is

question 115

Multiple Choice

Suppose a private monopolist is supplying a good that is nonrival but excludable. The market demand for the good is P = 24 - 3Q. If the marginal cost of providing this good is zero, but the firm charges $18, then the monopolist will provide ________ units, and the efficient number of units is ________.

• A)2; 8
• B)6; 8
• C)2; 2
• D)4; 2

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Definitions:

Information System

An organized system for the collection, organization, storage, and communication of information; it typically involves people, technology, and processes.

Information Centralization

The practice of gathering and managing all relevant information within a single, centralized database or system to improve accessibility and decision-making.

Current Inventory

The existing stock of goods held by a business meant for sale or production.

Continuous Review Policy

A inventory management approach where stock levels are constantly monitored, triggering reorders as needed.