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

question 30

Multiple Choice

A profit-maximizing monopoly faces an inverse demand function described by the equation p(y) = 90 - y and its total costs are c(y) = 9y, where prices and costs are measured in dollars.In the past it was not taxed, but now it must pay a tax of 4 dollars per unit of output.After the tax, the monopoly will

• A)increase its price by 4 dollars.
• B)increase its price by 2 dollars.
• C)leave its price constant.
• D)increase its price by 6 dollars.
• E)None of the above.

Identify the historical foundations of modern economic thought related to trade and specialization.

Understand the conditions under which trade can be beneficial or detrimental to individuals or countries.

Understand and calculate financial ratios to measure liquidity, profitability, and efficiency.

Apply the concept of the financial control process including its significance and types.

---

Definitions:

Disjunctions

Logical operations that result in truth if at least one of the operands is true.

Conditionals

Statements that express a hypothesis and its conclusion, commonly structured in "if...then..." format.

Provided

Given as a condition or stipulation in a particular situation or argument.

Supposing That

An expression used to introduce a hypothesis or an assumption for the sake of argument or analysis.