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

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Definitions:

Meristematic Tissue

Plant tissue found in regions of growth, made up of actively dividing cells that give rise to various organs of the plant.

Bud Scales

Protective structures that cover the developing buds of many plants, shielding them from environmental stresses such as cold temperatures.

Guttation

The exudation of drops of water from the tips or edges of leaves, resulting from root pressure in certain plants.

Transpiration

The process by which moisture is carried through plants from roots to small pores on the underside of leaves, where it changes to vapor and is released to the atmosphere.