The Profit-Maximizing Output of a Pure Monopoly Is Not Socially

question 21

Multiple Choice

The profit-maximizing output of a pure monopoly is not socially optimal, because in equilibrium

• A) price equals minimum average total cost.
• B) marginal revenue equals marginal cost.
• C) marginal cost exceeds price.
• D) price exceeds marginal cost.

---

Definitions:

Production Jobs

refer to specific manufacturing or production tasks or projects assigned to create goods or services, often tracked for costing purposes.

Work in Process

Goods that are in the process of being manufactured but are not yet complete.

Part No.

A unique identifier assigned to a specific part or component within a manufacturing system or inventory.

Work in Process Inventory

Inventory that includes all materials, labor, and overhead costs for products in the manufacturing process but not yet completed.