If the Marginal Costs Are Constant and Zero for a Single

question 53

Multiple Choice

If the marginal costs are constant and zero for a single price monopolist facing the demand curve P = 10 - Q, what will profits be if fixed costs are 12?

• A)10
• B)12
• C)13
• D)38

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Definitions:

Risk-free Rate

The return on investment considered completely free of risk, such as the return on government bonds in stable financial systems.

Economic Factors

Various elements such as inflation, unemployment rates, and GDP growth that influence the economic environment.

Diversified Portfolios

Investment strategies that spread investments across various assets to minimize risks associated with any single investment.

Equilibrium Risk Premium

The expected return on a risky asset over the risk-free rate that brings the supply and demand for the asset into balance.