4.A monopoly has this demand function:

Q_D = 60 (1/2)*P

And this MC function: MC = 8 + 3*Q

What is the profit-maximizing level of output (Q) this monopolist will produce?

Multiple Choice

• Q = 16

• Q = 18

• Q = 22

• None of the above

9.

Consider the following market. This is the entire market for cruises and the passengers, per cruise line, per year.

Cruise Line	Passengers Per Year (Millions)
Carnival	25
Royal Caribbean	22
Norwegian	18
MSC Cruises	15
Disney Cruises	11
TUI Cruises, Inc.	9

Which of the following is most accurate?

Multiple Choice

• The Four Firm Concentration Ratio for this market is approximately 60%, which means it is neither concentrated nor unconcentrated

• The Four Firm Concentration Ratio for this market is approximately 70%, which means it is concentrated

• The Four Firm Concentration Ratio for this market is approximately 80%, which means it is concentrated

• The Four Firm Concentration Ratio for this market is approximately 90%, which means it is concentrated

10.

YOU WILL USE THIS INFORMATION FOR THIS QUESTION AND THE NEXT QUESTION

Consider the following market. This is the entire market for cruises and the passengers, per cruise line, per year.

Cruise Line	Passengers Per Year (Millions)
Carnival	25
Royal Caribbean	22
Norwegian	18
MSC Cruises	15
Disney Cruises	11
TUI Cruises, Inc.	9

Which of the following comes closest to the Herfindahl Index for this market?

Multiple Choice

• 1860

• 1980

• 2170

• 2210