A Monopoly Has the Demand Curve Q = 10,000 -

question 14

Multiple Choice

A monopoly has the demand curve q = 10,000 - 100p.Its total cost function is c(q) = 1,000 + 10q.The government plans to tax the monopoly's profits at a rate of 50%.If it does so, the monopoly will

• A)increase its price by 50%.
• B)increase its price by more than 50%.
• C)recover some but not all of the tax it pays by increasing its price.
• D)not change its price or the quantity it sells.
• E)None of the above.

Understand the concept of motor skill development and its sequence in infancy.

Recognize the cultural practices related to infant care and their impact on development.

Grasp the importance of sleep patterns and preferences in different cultures for infants.

Understand the fundamentals of personal selling and the steps involved in the personal-selling process.

---

Definitions:

Fixed-Cost Fallacy

Consideration of costs that do not vary with the consequences of your decision (also known as the sunk-cost fallacy).

Depreciation Costs

The allocation of the cost of a tangible asset over its useful life, representing the decline in value due to wear and tear, age, or obsolescence.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to pursue a particular action.

Accounting Costs

Costs that appear on the financial statements of a company.