When a Monopolist Faces a Fixed Marginal Cost of Production

question 29

Multiple Choice

When a monopolist faces a fixed marginal cost of production, profit is maximized if:

• A)the slope of the tangent to the total revenue curve is equal to the slope of the total cost curve.
• B)the slope of the total cost curve is 1.
• C)the marginal revenue is zero.
• D)the slope of the tangent to the total revenue curve is equal to the slope of the marginal revenue curve.

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Definitions:

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The person or entity to whom rights, interests, or properties are legally transferred.

Rights to Payment

Legal entitlements to receive money from another party, either through contractual agreement or as compensation for damages.

Personal in Nature

Characteristics or belongings that are intimately related to an individual's private life or identity.

Assignment

The transfer of rights, property, or obligations from one party to another, often used in contracts and in the context of loans or leases.