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

question 54

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 marginal revenue function for 2016 is:

• A)MR = 200,000- 0.004Q
• B)MR = 424- 0.002Q
• C)MR = 110 - 0.002Q
• D)MR = 424 - 0.004Q
• E)MR = 120 -0.002Q

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Definitions:

Weight Factors

Variables or coefficients applied in calculations to adjust the importance or influence of specific elements in quantitative analysis or models.

Weighted Physical Units

A method used in cost accounting to average the units produced during a period, accounting for units in progress at the beginning and end of the period.

Net Realizable Method

An accounting approach used to evaluate inventory or accounts receivable's net value, accounting for possible losses or costs.

Joint Costs

Joint costs are costs incurred during the production of multiple products, where the costs cannot be readily attributed to individual products.