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Suppose a Monopolist Charges a Price of $27 for Its

Question 131

Multiple Choice

Suppose a monopolist charges a price of $27 for its product and sells 10 units at that price. At 10 units of production the firm has average fixed cost equal to $10 and average variable cost equal to $12. How much total profit is the firm earning at this price?


A) $5
B) $25
C) $50
D) $140

Correct Answer:

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