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

question 3

Multiple Choice

A profit-maximizing monopoly faces an inverse demand function described by the equation p(y) = 30 - y and its total costs are c(y) = 6y, 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)increase its price by 2 dollars.
• B)increase its price by 3 dollars.
• C)increase its price by 1 dollar.
• D)leave its price constant.
• E)None of the above.

---

Definitions:

Institutionalized Socialization

The process through which individuals learn and adopt the norms, values, and behaviors necessary for functioning within a particular institution or organization.

Psychosocial Function

The interrelation of social factors and individual thought and behavior, affecting a person's social functioning.

Career Functions

Refers to the aspects of a career that enhance an individual's future employability, such as training, networking, and mentorship.

Positive Attitudes

Psychological states characterized by optimism, positivity, and constructive perspectives towards situations or individuals.