A Monopolist Has Discovered That the Inverse Demand Function of a Person

question 4

Multiple Choice

A monopolist has discovered that the inverse demand function of a person with income M for the monopolist's product is p = .002 M -0 q.The monopolist is able to observe the incomes of its consumers and to practice price discrimination according to income (second-degree price discrimination) .The monopolist has a total cost function, c(q) = 100q.The price it will charge a consumer depends on the consumer's income, M, according to the formula

• A)p = .001 M + 50.
• B)p = .002 M - 100.
• C)p = M ².
• D)p = .01 M ² + 100.
• E)None of the above.

---

Definitions:

Controlling

In management, it refers to the process of monitoring performance, comparing it with goals, and taking corrective action as needed.

Communication

The process of exchanging information, ideas, thoughts, and messages through speech, writing, signals, or behavior.

Conflict Resolution

The removal of the substantive and emotional reasons for a conflict.

Teamwork

Collaborative effort by a group to achieve a common goal or complete a task in the most effective and efficient way.