Suppose a Lazy Monopolist's Fixed Costs Are Higher Than the Fixed

question 25

Multiple Choice

Suppose a lazy monopolist's fixed costs are higher than the fixed costs of an efficient monopolist. In all other respects the monopolists are the same. Which of the following statements about this lazy monopolist is true?

• A) Its total profit is lower than that of the monopolist producing efficiently.
• B) Its total profit is the same as that of the monopolist producing efficiently.
• C) Its total revenue is less than that of the monopolist producing efficiently.
• D) It produces less than does the monopolist producing efficiently.

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Definitions:

Exporting Industry

A sector of a country's economy that produces goods or services for sale abroad.

Imported Good

A product or service that is brought into one country from another and offered for sale.

Exported Good

A product manufactured in one country but shipped and sold abroad, contributing to a country's foreign trade balance.

Government Tax Revenue

Funds collected by the government from taxes imposed on individuals and businesses, used to fund public services and infrastructure.