The Demand for a Monopolist's Output Is 6,000/(p + 7)²

question 68

Multiple Choice

The demand for a monopolist's output is 6,000/(p + 7) ², where p is its price.It has constant marginal costs equal to $5 per unit.What price will it charge to maximize its profits?

• A)$33
• B)$12
• C)$26
• D)$17
• E)$5

---

Definitions:

Risk

The possibility of loss or another adverse outcome resulting from a particular action or event.

Negatively Skewed Distribution

A probability distribution that is skewed to the left, indicating that the tail on the left side of the probability density function is longer or fatter than the right side.

Negative Correlation Coefficient

A statistical measure indicating that as one variable increases, the other variable tends to decrease.

Linear Relationship

A type of connection between two variables where the change in one is directly proportional to the change in the other.