The Figure Above Shows a Monopoly's Total Revenue and Total

question 372

Multiple Choice

The figure above shows a monopoly's total revenue and total cost curves.
-Using the figure above,which of the following statements are correct?
i.MR = MC = $42 when 3 haircuts are produced.
ii.If the firm charges each customer the same price for a haircut,the price of a haircut is $14.
iii.The firm's economic profit is $12.

• A) i only
• B) ii only
• C) i and ii
• D) i and iii
• E) i, ii, and iii

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Definitions:

Statutory Close Corporation Supplement

A legal provision allowing a closely held corporation to operate with less formal procedures than are required of other corporations.

Fewer than 100 Shareholders

A characteristic of some business entities, like S-corporations, which limits the number of shareholders to maintain eligibility for certain tax benefits.

Model and Revised Acts

Model and Revised Acts are standardized legislative drafts provided as a suggestion for lawmaking bodies to adopt or adapt, aiming to create uniformity across jurisdictions.

Diversity of Citizenship

A legal requirement for federal jurisdiction, where parties involved in a lawsuit are citizens of different states or countries.