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A Profit-Maximizing Monopolist Charges a Price of $12

Question 560

Multiple Choice

A profit-maximizing monopolist charges a price of $12. The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $6. Average total cost for 10 units of output is $5. What is the monopolist's profit?


A) $60
B) $70
C) $100
D) $120

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