A Monopolist Finds the Output (Q*) Rate That Maximizes Profit

question 339

Multiple Choice

A monopolist finds the output (Q*) rate that maximizes profit. It finds the price by

• A) taking the height of the marginal revenue curve at output rate Q*.
• B) taking the height of the marginal cost curve at output rate Q*.
• C) taking the height of the demand curve at output rate Q*.
• D) setting price equal to marginal cost.

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Definitions:

General Partner

A partner in a partnership who has unlimited personal liability for the debts of the business and takes part in its day-to-day management.

Limited Partnership

A business structure where one or more partners have limited liability and are not involved in the day-to-day management, juxtaposed with at least one general partner who has unlimited liability.

RULPA

The Revised Uniform Limited Partnership Act, which is a statute that governs limited partnerships in the states that have enacted it.

Limited Partnership Certificate

A document that formally establishes the existence of a limited partnership and outlines its structure and operating principles.