The Following Graph Gives Cost and Revenue Data for a Monopolist

question 45

Multiple Choice

The following graph gives cost and revenue data for a monopolist:

-Refer to the above graph to answer this question.If the monopolist is unregulated and wishes to maximize its total revenue,what will be its price and output?

• A)$0 and 80.
• B)$10 and 70.
• C)$10 and 140.
• D)$40 and 80.
• E)$45 and 70.

---

Definitions:

Convertible Bond

A type of bond that can be converted into a specified number of shares of the issuing company's stock at certain times during its life, usually at the discretion of the bondholder.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily coincide with its market value.

Expiration Date

In finance, this term often refers to the date on which a derivative contract, such as an option or futures contract, becomes void and ceases to trade.

Option Contract

A financial derivative contract that grants the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date.