If a Monopolist Faces an Inverse Demand Curve, P(y)= 100

question 11

Multiple Choice

If a monopolist faces an inverse demand curve, p(y) = 100 - 2y and has constant marginal costs of $16 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, its total profits will be

• A)$21.
• B)$1,764.
• C)$2,646.
• D)$882.
• E)$441.

Calculate and understand the role of expected inventories in budgeting.

Recognize the importance of variable and fixed costs in budget preparation.

Develop schedules for expected cash collections and merchandise purchases.

Understand the steps and calculations involved in preparing a master budget, including sales, production, and cash budgets.

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Definitions:

General Adaptation Syndrome

A three-stage process that describes the physiological changes the body goes through when under stress: alarm, resistance, and exhaustion.

Alarm Reaction

The first stage of the GAS, which is triggered by the impact of a stressor and characterized by sympathetic activity.

Exhaustion Stage

The final phase of the stress response, as described by Hans Selye, characterized by depleted physical and mental resources, leading to burnout or health issues.

Resistance Stage

The second phase of the General Adaptation Syndrome, where the body mobilizes its defenses to cope with a stressor.