A Monopoly Is Producing a Level of Output at Which

question 4

Multiple Choice

A monopoly is producing a level of output at which price is $80,marginal revenue is $40,average total cost is $100,marginal cost is $40,and average fixed cost is $10.In order to maximize profit,the firm should

• A)produce more.
• B)keep output the same.
• C)produce less.
• D)shut down.

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Definitions:

Oxygen Source

An entity or process that produces or supplies oxygen, necessary for the survival of most life forms on Earth.

Air

A mixture of gases that constitute the Earth's atmosphere, primarily composed of nitrogen, oxygen, argon, and carbon dioxide.

Unbalanced Reaction

A chemical equation where the number of atoms for each element is not the same on both sides of the equation.

Gunpowder

A mixture of saltpeter (potassium nitrate), sulfur, and charcoal (carbon) that explodes when ignited.