The Following Graph Gives Cost and Revenue Data for a Monopolist

question 51

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 regulated and forced to charge the socially optimum price,what will be its price and output?

• A)$10 and 70.
• B)$25 and 110.
• C)$30 and 100.
• D)$45 and 70.
• E)$60 and 40.

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Definitions:

Dividends Payable

A liability representing an amount owed by a company to its shareholders as a distribution of the company's earnings.

End of the Year

Typically refers to the close of the fiscal or calendar year, a key time for financial reporting and assessment for businesses.

Depreciation Expense

The allocation of the cost of a tangible asset over its service life, representing how much of an asset's value has been used up over time.

Accounts Receivable

Unpaid amounts from customers for goods or services that a business has already provided.