Which of the Following Formulas Correctly Measures the Profit of a Monopoly

question 89

Multiple Choice

Which of the following formulas correctly measures the profit of a monopoly?

• A)  = TR − TC
• B)  = (P − ATC)Q
• C)  = (P − AVC)Q
• D)  = TR − TC and  = (P − ATC)Q

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Definitions:

Good Bought

Refers to a product or service that has been purchased by a consumer or organization.

Equilibrium Price

Equilibrium price is the price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market situation.

Milk

A nutrient-rich liquid food produced by the mammary glands of mammals, widely consumed by humans and used in a variety of dairy products.

Government Storage

Facilities or locations maintained by governmental entities for storing commodities, essential goods, or records.