If a Monopolist Has Zero Marginal Costs, It Will Produce

question 517

Multiple Choice

If a monopolist has zero marginal costs, it will produce

• A)the output at which total revenue is maximized.
• B)in the range in which marginal revenue is still increasing.
• C)at the point at which marginal revenue is at a maximum.
• D)in the range in which marginal revenue is negative.

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Definitions:

Implied Warranty

a legal concept that guarantees a product will meet certain expectations and quality standards, even if not explicitly stated.

Merchants

Individuals or businesses engaged in the selling of goods, services, or commodities for profit.

Reasonably Fit

A standard in commercial transactions that signifies goods provided under a contract must be of average or suitable quality for the purposes for which such goods are normally used.

Implied Warranty

A legal term for guarantees that are not expressly stated but are assumed in the sale of goods or services, ensuring basic standards of quality and functionality.