Suppose That the Profit Maximizing Level of Output for the Monopolist

question 111

Multiple Choice

Suppose that the profit maximizing level of output for the monopolist is 100 units, and ATC = $45.00; MC = $35.00; MR = $35.00; P = $50.00. What is the monopoly's profit?

• A) -$1000
• B) $4500
• C) $5000
• D) $500

---

Definitions:

Reserve Ratio

The portion of depositors' balances that banks must have on hand as cash, a regulatory requirement meant to ensure bank stability and liquidity.

Total Deposits

The sum of all money that is deposited in a bank's accounts by its customers.

Commercial Banks

Depository institutions that historically made short-term loans primarily to businesses.

Loans

Borrowed sums of money that need to be repaid with interest over a predetermined period.