Scenario 15-1 A Monopoly Firm Maximizes Its Profit by Producing Q =

question 214

Multiple Choice

Scenario 15-1
A monopoly firm maximizes its profit by producing Q = 500 units of output. At that level of output, its marginal revenue is $40, its average revenue is $80, and its average total cost is $44.
-Refer to Scenario 15-1. At Q = 500, the firm's marginal cost is

• A)less than $40.
• B)$40.
• C)$44.
• D)greater than $44.