Multiple Choice
Suppose when a monopolist produces 75 units its average revenue is $10 per unit, its marginal revenue is $5 per unit, its marginal cost is $6 per unit, and its average total cost is $5 per unit. What can we conclude about this monopolist?
A) The monopolist is currently maximizing profits, and its total profits are $375.
B) The monopolist is currently maximizing profits, and its total profits are $300.
C) The monopolist is not currently maximizing profits; it should produce more units and charge a lower price to maximize profits.
D) The monopolist is not currently maximizing profits; it should produce fewer units and charge a higher price to maximize profits.
Correct Answer:
Verified
Correct Answer:
Verified
Q32: Copyrights and patents are examples of barriers
Q33: State one benefit of government-granted monopolies like
Q78: Comparing firms in perfectly competitive markets to
Q128: For a monopoly, marginal revenue is often
Q141: At the profit-maximizing quantity of output for
Q484: Figure 15-20 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 15-20
Q485: During the holiday season, high-end retailers frequently
Q488: Table 15-21<br>Tommy's Tie Company, a monopolist, has
Q490: When a local grocery store offers discount
Q491: Figure 15-9 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 15-9