Refer to the following:
Columns 1 and 2 make up a portion of a monopolist's production function for a single variable input, labor. Columns 2 and 3 represent the demand function facing the monopolist over this range of output:
-If an increase in consumers' income increases product price by $2 at each level of output, how many units of labor will the firm employ at a wage rate of $300?
A) 3
B) 4
C) 5
D) 6
E) 7
Correct Answer:
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Columns 1 and
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A)always charge a price higher
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