The Following Figure Shows the Graph of a Monopoly Market

question 169

Multiple Choice

The following figure shows the graph of a monopoly market. The marginal revenue curve has been omitted.

-Refer to the figure above.How much would this monopolist charge for its product?

• A) $2
• B) $3
• C) $5
• D) $10

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Definitions:

Selling Price

The amount of money charged for a product or service, or the sum for which something is sold.

Margin of Safety

The difference between actual sales and the break-even point, indicating how much sales can fall before a business incurs a loss.

Fixed Expenses

Costs that do not vary with the level of production or sales, remaining constant over a period of time.

Variable Expenses

Charges that adjust directly with the volume of production or sales, encompassing costs related to raw materials and direct labor.