In the Long Run, a Pure Monopolist Will Maximize Profits

question 22

Multiple Choice

In the long run, a pure monopolist will maximize profits by producing that output at which marginal cost is equal to

• A)average total cost.
• B)marginal revenue.
• C)average variable cost.
• D)average cost.

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Definitions:

Compounded Monthly

A method of calculating interest where the interest earned is added to the principal each month, and the next month's interest is calculated on this new total.

Interest Rate

The proportion of a total amount of money that is levied for borrowing it, usually stated as an annual rate.

Annual Return

The percentage of gain or loss on an investment over a one-year period, taking into account both capital gains and dividends.

Retirement Fund

Financial resources that have been saved and are used to support a person's retirement.