Multiple Choice
The market demand for a monopoly firm is estimated to be: where
is quantity demanded,P is price,M is income,and
is the price of a related good.The manager has forecasted the values of M and
will be $50,000 and $20,respectively,in 2016.The average variable cost function is estimated to be
Total fixed cost in 2016 is expected to be $4 million.The profit-maximizing level of output for 2016 is
A) 1,000 units.
B) 4,000 units.
C) 5,000 units.
D) 10,000 units.
E) 20,000 units.
Correct Answer:

Verified
Correct Answer:
Verified
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