A Monopolist Sells 2,000 Units for $20 Each

question 68

Multiple Choice

A monopolist sells 2,000 units for $20 each. The total cost of producing 2,000 units is $30,000. If the price falls to $19, the number of units sold increases to 2,100. The total cost of producing 2,100 units is $30,075. Total profits at 2,000 units of output and a price of $20 are

• A) $30,000.
• B) $20,000.
• C) $10,000.
• D) $0 in the long run.

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