Question

A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 − Q. Which of the following is the marginal revenue function for the firm? Select one: a. MR = 50 − 2Q b. MR = 100 − Q c. MR = 60 − 2Q d. MR = 50 − Q

In producing the efficient amount of a public good, government should take into account: Select one: a. only the demand from low-demand consumers. b. the vertical sum of all individual inverse demand curves. c. the horizontal sum of all individual inverse demand curves. d. only the demand from high-demand consumers.

You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table. Project Boom (50%) Recession (50%) A $20 -$10 B -$10 $20 C $30 -$30 D $50 $50 Which project has the lowest expected value? Select one: a. B b. C c. D d. A

Answer 1

CT.R) A monopoly produces widgets at marginal cost of $10 per unit. Inverse demond P- 50- lution Total Revenue = P Q = (50-10) 4 = 50 0-0² . Marginal Revenue (MR) = ATR = 50-24 mor=.50-20] correct option is (a) 5...20 :. inverse In producing efficient amount of public goverment should take into account: 67 The verticle sum of all individual demand 'curves payoffs are not clear: