Which of the Following Is ALWAYS True for a Profit-Maximizing

question 508

Multiple Choice

Which of the following is ALWAYS true for a profit-maximizing single-price monopolist?

• A) P = MC
• B) P = MR
• C) MR = MC
• D) MC = ATC

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Definitions:

Shareholders

Owners of shares in a corporation, holding a portion of the business's stock, and therefore having rights to dividends and a say in company matters.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities.

S Corporation Election

A tax status election made by a corporation with the Internal Revenue Service to be taxed as a pass-through entity, avoiding double taxation on corporate income.

Shareholders' Consent

The approval or agreement by shareholders, often required for major company decisions, typically obtained through voting mechanisms.