A Profit-Maximizing Monopolist Charges a Price of $12

question 560

Multiple Choice

A profit-maximizing monopolist charges a price of $12. The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $6. Average total cost for 10 units of output is $5. What is the monopolist's profit?

• A)$60
• B)$70
• C)$100
• D)$120

Interpret economic data tables to assess the outcomes of different trade scenarios.

Explain the economic rationale behind exporting and importing goods.

Appreciate the role of opportunity costs in individual decision-making regarding resource allocation.

Understand the steps and importance of the planning process in achieving organizational objectives.

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Definitions:

Argon

A noble gas element with the atomic number 18, colorless, odorless, and inert, making up about 1% of the Earth's atmosphere.

React

To react means to respond to a stimulus or to undergo a chemical change.

Electronegativity

A measure of an atom's ability to attract and hold electrons in a chemical bond.

Ionic Bond

A type of chemical bond where one atom transfers electrons to another atom, resulting in oppositely charged ions that attract each other.