For a Monopolist, Profit Is Determined by Which of the Following

question 147

Multiple Choice

For a monopolist, profit is determined by which of the following equations?

• A) Profit = Total revenue - Total cost
• B) Profit = (TR/Q - TC/Q) * Q
• C) Profit = (Price - Average total cost) * Quantity
• D) all of the above

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Definitions:

Sales Tax

A tax paid to a governing body for the sales of certain goods and services, usually collected by the retailer.

Entry Record

The documented recording of a financial transaction in an accounting system.

Sales and Sales Taxes

Revenue from goods or services sold, and the tax collected on these sales, which is remitted to the government.

Gross Earnings

The total income earned by a business before deductions such as taxes, expenses, and costs.