If a Monopolist's Price Is $50 at 63 Units of Output

question 65

Multiple Choice

If a monopolist's price is $50 at 63 units of output, and marginal revenue equals marginal cost, and average total cost equals $43, then what is the firm's total profit?

• A)$3150.
• B)$2709.
• C)$441.
• D)$7.

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Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum quantity of two goods that can be produced with available resources and technology.

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.

Capital Goods

Items that are used in the production of other goods and services, rather than being bought by consumers.

Opportunity Costs

The cost of choosing one alternative over others, representing the benefits an individual, investor, or business misses out on when choosing one option over another.