If a Monopolist Is Maximizing Its Profits, We Know That

question 49

Multiple Choice

If a monopolist is maximizing its profits, we know that it has

• A) maximized total revenue.
• B) maximized marginal revenue.
• C) minimized total cost.
• D) equated marginal cost and marginal revenue.

Calculate and interpret measures of central tendency, including mean, median, mode, and midrange.

Recognize and compute quartiles and percentiles, understanding their role in data analysis.

Identify and calculate measures of dispersion, such as range, variance, and standard deviation.

Use Microsoft Excel 2010 for statistical calculations including mean, standard deviation, and mode.

---

Definitions:

Marginal Returns

The change in output resulting from a one-unit increase in a particular input, while holding other inputs constant.

Marginal Cost

The rise in overall expenses associated with the production of an extra unit of a product or service.

Average Total Cost

The total cost of production divided by the number of units produced, giving a per unit cost of production.

Marginal Cost

The expense associated with creating an extra unit of a product or service.