A monopolist faces a demand curve given by P = 20 - Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 - 2Q and its marginal cost is MC = 2Q. Now suppose that the country in which this monopolist is located decides to engage in international trade. The world price of the product produced by the monopolist is $12. The profit-maximizing output level is 6, and the profit-maximizing price equals $12. What are its monopoly profits at this price and quantity?
a. $25
b. $36
c. $50
d. $75
Ans: b. $36
Economics
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Potential problems with incentive based compensation are
a. not evaluating the relevant performance measures b. rewarding outcomes that are not include in the performance evaluation c. not funding rewards for meeting performance measures d. all of the above
Economics
Figure 10-18
Based on , when the aggregate demand curve is in the position AD1, the economy's position of long-run equilibrium corresponds to point
a.
E1.
b.
E2.
c.
E3.
d.
E1 or E2.
Economics