A Profit-Maximizing Monopoly Faces an Inverse Demand Function Described by the Equation

question 11

Multiple Choice

A profit-maximizing monopoly faces an inverse demand function described by the equation p(y) = 50 - y and its total costs are c(y) = 10y, where prices and costs are measured in dollars.In the past it was not taxed, but now it must pay a tax of 2 dollars per unit of output.After the tax, the monopoly will

• A)leave its price constant.
• B)increase its price by 2 dollars.
• C)increase its price by 3 dollars.
• D)increase its price by 1 dollar.
• E)None of the above.

Understand the concept of ethical expectations and behavior within an organization.

Recognize conflicts of interest and how they impact business ethics.

Identify the stages of moral and ethical development in the workplace.

Understand the role of integrity and loyalty in adhering to ethical principles in business situations.

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Definitions:

FICA Payroll Tax

Federal taxes in the United States that fund Social Security and Medicare, required to be withheld from employees' paychecks and also matched by employers.

Social Security

A government program that provides monetary assistance to people with inadequate or no income, primarily focused on retirees, disabled individuals, and survivors of deceased workers.

Medicare

In the United States, Medicare is a government-run health insurance scheme designed for individuals who are 65 years of age or older, along with certain younger individuals who have disabilities.

Employee Benefits Expense

Costs incurred by a company to provide benefits to its employees, such as health insurance, retirement plans, and sick leave.