Suppose When a Monopolist Produces 50 Units Its Average Revenue

question 262

Multiple Choice

Suppose when a monopolist produces 50 units its average revenue is $8 per unit, its marginal revenue is $4 per unit, its marginal cost is $4 per unit, and its average total cost is $3 per unit. What can we conclude about this monopolist?

• A)The monopolist is currently maximizing profits, and its total profits are $200.
• B)The monopolist is currently maximizing profits, and its total profits are $250.
• C)The monopolist is not currently maximizing its profits; it should produce more units and charge a lower price to maximize profit.
• D)The monopolist is not currently maximizing its profits; it should produce fewer units and charger a higher price to maximize profit.

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Definitions:

Neodissociation Theory

A psychological theory suggesting that during hypnosis, consciousness is divided or dissociates into different streams, allowing for activities and experiences to occur independently of each other.

Posthypnotic Amnesia

A condition where individuals are unable to recall events or information obtained while under hypnosis, once they come out of the hypnotic state.

Hypnotic Suggestions

Instructions or prompts given to a person under hypnosis intended to influence their thoughts, behaviors, perceptions, or sensations.

Personality Trait

Enduring characteristics or qualities that constitute individual differences in behavior consistently observed over time and situations.