Using Time-Series Data,the Demand Function for a Profit-Maximizing Monopolist Has

question 23

Multiple Choice

Using time-series data,the demand function for a profit-maximizing monopolist has been estimated as where is the amount sold,P is price,M is income,and is the price of a related good.The estimated values for M and in 2014 are $25,000 and $200,respectively.The short-run marginal cost curve for this firm has been estimated as: Total fixed cost is forecast to be $500,000 in 2016.The forecasted demand function for 2016 is:

• A) = 212,000- 500P
• B) = 200,000 - 2,000P
• C) = 80,000 - 500P
• D) = 150,000 - 2,000P
• E) = 110,000 - 500P

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Definitions:

Acidic Waters

Water with a pH less than 7, often resulting from natural processes such as volcanic emissions or anthropogenic sources like pollution.

Limestone

A sedimentary rock composed mainly of calcium carbonate (CaCO3), often formed from the remains of marine organisms and used extensively in building and industry.

Calcium Carbonate

A chemical compound with the formula CaCO3, found in rocks as the minerals calcite and aragonite and is the main component of pearls, marine organisms' shells, and snail shells.

Precipitation

The process by which water vapor in the atmosphere condenses into droplets or ice crystals that fall to the Earth's surface, contributing to the hydrological cycle.