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

question 97

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.What is the profit-maximizing or loss-minimizing) level of production?

• A)0 units,the firm should shut down.
• B)1,000 units
• C)1,800 units
• D)2,000 units
• E)8,000 units

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Definitions:

U.S.

Refers to the United States of America, a country consisting of 50 states and a federal district, known for its significant influence on world affairs.

Per Capita GDP

A measure that calculates the economic output per person by dividing the GDP of a country by its population.

Declined

A decrease or reduction in a certain activity, condition, or quantity, often indicating a downward trend.

United States

A country located in North America, comprising 50 states, a federal district, and various territories, known for its large economy and diverse population.