-Suppose the Busy Bee Café Is the Monopoly Producer of Hamburgers

question 339

Multiple Choice

-Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo,Oklahoma.The above figure represents the demand,marginal revenue,and marginal cost curves for this establishment.If the Busy Bee produces 40 hamburgers per hour,then

• A) marginal revenue will exceed marginal cost.
• B) profit will be maximized.
• C) marginal revenue will be negative.
• D) marginal revenue will be maximized.
• E) both the marginal revenue and the price will be negative.

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Definitions:

Water

Water is a transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's streams, lakes, and oceans, and the fluids of most living organisms.

Ions

Ions are atoms or molecules with a net electric charge due to the loss or gain of one or more electrons.

Carbon Dioxide

Carbon dioxide is a colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Molecule

The smallest unit of a chemical substance that retains its chemical properties, consisting of two or more atoms bonded together.