Use the Figure to Answer the Following Question(s)

question 151

Multiple Choice

Use the figure to answer the following question(s) .
Figure 11-8
-If the output in the industry is produced by a monopolist, at what price will the good sell and what quantity will be produced in Figure 11-8?

• A) price, $10; quantity produced, 100
• B) price, $15; quantity produced, 50
• C) price, $15; quantity produced, 75
• D) price, $20; quantity produced, 50

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Definitions:

Implicit Costs

The opportunity costs of using resources already owned by the firm for production, as opposed to external spending.

Economic Profit

The difference between revenue generated from output and the opportunity costs of inputs used, considering both explicit and implicit costs.

Accounting Profit

The profit of a company after all expenses have been deducted from revenues, but before deducting income taxes.

AVC (Average Variable Cost)

The total variable cost divided by the quantity of output produced; it varies with production.