Refer to the Demand and Cost Data for a Pure

question 329

Multiple Choice

Refer to the demand and cost data for a pure monopolist given in the table. If the monopolist perfectly price-discriminated and sold each unit of the product at the maximum price the buyer of that unit would be willing to pay, and if the monopolist maximized profits, then the total profit received would be

• A)$250.
• B)$400.
• C)$1,000.
• D)$900.

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Definitions:

Unrealized Gains and Losses

Increases or decreases in the value of investments that have not yet been sold.

Income Statement

A document that showcases a company’s financial performance, specifically its revenue, expenses, and profits or losses, over a particular time period; also known as a profit and loss statement.

Consolidated Financial Statements

Combined financial reports of a parent company and its subsidiaries, presenting the financial position and results of operations as a single entity.

Subsidiaries

Companies that are controlled by another company, known as the parent company.