Total Output Price Marginal

question 101

Multiple Choice

Total Output Price Marginal
Revenue
Average
Total Cost
Marginal
Cost
1 $100 $100 $100.00 $30
2 90 80 63.00 26
3 80 60 52.67 32
4 70 40 49.50 40
5 60 20 49.60 50
6 50 0 50.00 52
7 40 -20 52.29 66
8 30 -40 55.75 80
9 20 -60 60.67 100
10 10 -80 67.60 130
Refer to the data for a nondiscriminating monopolist.At its profit-maximizing output, this firm's price will exceed its marginal cost by and its average total cost by .

• A)$20; $27.33
• B)$10; $10.40
• C)$24; $27.33
• D)$30; $20.50

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Definitions:

Historical Cost

The initial cost of an asset or investment when it was first purchased.

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Legal documents granting exclusive rights to inventors for their innovations, preventing others from making, using, or selling the invention for a certain period of time.

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