Use the Following to Answer Question

question 274

Multiple Choice

Use the following to answer question:
Figure: The Profit-Maximizing Output and Price
-(Figure: The Profit-Maximizing Output and Price) Use Figure: The Profit-Maximizing Output and Price.Assume that there are no fixed costs and AC = MC = $200.At the profit-maximizing output and price for a monopolist,producer surplus is:

• A)$3,200.
• B)$6,400.
• C)$1,000.
• D)$1,600.

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Definitions:

Customs Act

Legislation that governs the importation and exportation of goods in and out of a country.

Wrong Rate

The incorrect or inappropriate pricing rate applied to a service, product, or financial transaction.

Licensing

The act of granting permission to use intellectual property rights, such as patents or trademarks, under agreed terms and conditions.

Foreign Distribution Agreements

Contracts between companies for the distribution of goods or services in countries other than their own.