Figure 15-15 -Refer to Figure 15-15. to Maximize Its Profit, a Monopolist

question 392

Multiple Choice

Figure 15-15
-Refer to Figure 15-15. To maximize its profit, a monopolist would choose which of the following outcomes?

• A)Q = 30 and P = 30
• B)Q = 30 and P = 60
• C)Q = 45 and P = 45
• D)Q = 60 and P = 30

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Definitions:

Average Variable Cost

The total variable costs of production divided by the number of units produced, indicating the variable cost per unit.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm or production process scales up, contrary to economies of scale where costs decrease.

Boeing

An American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide.