A Monopolist Produces the Equilibrium Output of 350 Units at a Price

question 48

Multiple Choice

A monopolist produces the equilibrium output of 350 units at a price of $50.Given that the monopolist's marginal cost is equal to $15 and the monopolist earns a profit of $5,500,what is the monopolist's approximate average cost?

• A)$66
• B)$34
• C)$70
• D)$16
• E)$23

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Definitions:

Hierarchy of Motives

A concept that suggests human needs are arranged in a hierarchical order, which affects their expression and pursuit.

Optimum Arousal

A psychological concept suggesting there is a level of arousal that is ideal for performance and learning, too little or too much arousal can negatively impact performance.

Environmental Stimuli

External inputs from the environment that can affect an organism's behavior, physiology, and reactions, ranging from temperature changes to social interactions.

Energizes

Provides with energy or increases vigor.