A Monopolist Has the Total Cost Function C(q)= 800 +8q

question 18

Multiple Choice

A monopolist has the total cost function c(q) = 800 +8q.The inverse demand function is 80 - 6q, where prices and costs are measured in dollars.If the firm is required by law to meet demand at a price equal to its marginal costs,

• A)the firm's profits will be zero.
• B)the firm will lose $400.
• C)the firm will make positive profit but not as much profit as it would make if it were allowed to choose its own price.
• D)the firm will lose $800.
• E)the firm will lose $480.

---

Definitions:

Coalition Formation

The process of individuals or groups coming together to achieve a common goal or interest.

Assertiveness

A communication style characterized by confidence and directness in expressing one's opinions, needs, and desires, while respecting others.

Ingratiation

A psychological technique aimed at making oneself more likable to others through flattery or other forms of manipulation.

Impression Management

The process through which individuals attempt to control the perceptions others have of them, usually to appear more favorable or competent.