A Monopolist Will Maximize Profits by

question 146

Multiple Choice

A monopolist will maximize profits by

• A) setting his price as high as possible.
• B) setting his price at the level that will maximize per-unit profit.
• C) producing the output where marginal revenue equals marginal cost.
• D) producing the output where price equals marginal cost.

Understand the importance of formality in business communication.

Identify strategies to increase formality in writing business reports.

Comprehend the structure and components of business reports and proposals.

Summarize the process involved in completing business reports and proposals.

---

Definitions:

Retained Earnings

The accumulated portion of net income that a company decides to keep, rather than distributing among shareholders as dividends, to finance investment or pay off debt.

Common Shares

Equity securities representing ownership interests in a corporation, providing voting rights and entitling shareholders to a share of the company's profits via dividends.

Share Capital

The total amount of funds raised by a company through the issuance of shares to shareholders, representing ownership in the company.

Retained Earnings

The portion of a company's profit that is kept or retained within the company, not distributed to shareholders as dividends.