If a Monopoly Is Maximizing Profits

question 13

Multiple Choice

If a monopoly is maximizing profits:

• A)price will always be greater than average cost.
• B)price will always equal marginal cost.
• C)price will always be greater than marginal cost.
• D)price will always equal marginal revenue.

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Definitions:

FIFO

"First In, First Out," a stock valuation approach where the earliest acquired or manufactured items are the first to be sold or utilized.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to each number.

Moving Average

A statistical method used to analyze data points by creating a series of averages of different subsets of the full data set, commonly used in financial markets to identify trends.