A Monopolist Maximizes Profits at the Output at Which

question 54

Multiple Choice

A monopolist maximizes profits at the output at which

• A)total revenue is at its greatest, assuming that the firm has both fixed and variable costs.
• B)price equals marginal cost.
• C)price exceeds marginal cost by the greatest amount.
• D)none of the above

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Definitions:

Opportunity Cost

The foregone benefit that could have been achieved from options not chosen when selecting one among several alternatives.

Property Taxes

Taxes assessed on real estate by local government, based on the property's value.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted.

Photo-prints

Photographic images produced on paper or other substrates from digital or film originals.