Table 14-17 -Refer to Table 14-17.If a Monopolist Faces a Constant Marginal

question 349

Multiple Choice

Table 14-17

-Refer to Table 14-17.If a monopolist faces a constant marginal cost of $4,how much output should the firm produce?

• A) 3 units
• B) 4 units
• C) 5 units
• D) 6 units

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Definitions:

Accounting Rate of Return

This is a financial ratio used to estimate the profitability of an investment, calculated by dividing the average annual accounting profit by the initial investment cost.