A Monopolist Faces the Inverse Demand Function Described by P

question 3

Multiple Choice

A monopolist faces the inverse demand function described by p = 23 - 5q, where q is output.The monopolist has no fixed cost and his marginal cost is $6 at all levels of output.Which of the following expresses the monopolist's profits as a function of his output?

• A)23 - 5q - 6
• B)17q - 5q²
• C)23 - 10q
• D)23q - 5q² - 6
• E)None of the above.

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Definitions:

Operational Efficiency

The capability of an organization to minimize waste and cost while maximizing output and quality in its operations.

Government Agencies

Entities established by a government to perform specific functions or provide services in various sectors such as health, education, and defense.

Rent-seeking Activity

Efforts to increase one's share of existing wealth without creating new wealth, often through lobbying or corruption to secure government interventions.

Government Activity

Actions and operations undertaken by the government to fulfill its various roles, such as providing public services, regulating industries, and ensuring economic stability.