Suppose the Figure Below Shows the Demand Curve, Marginal Revenue

question 137

Multiple Choice

Suppose the figure below shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist. At this monopolist's profit-maximizing level of output, its total revenue equals the area:

• A)0HNC.
• B)0FJB.
• C)0FLE.
• D)ELJB. MC = MR at F units of output, and from the demand curve we can see that at that level of output, the monopolist will charge a price of B. Total revenue equals price times quantity.

Distinguish between the types of contracts that require written evidence and those that do not.

Recognize the role of oral contracts and circumstances under which they are enforceable.

Identify the essential terms that must be included in a contract to make it enforceable.

Understand the concept of parol evidence and its limitations in adding to or varying the terms of a written contract.

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Definitions:

Office Equipment

Durable assets used in an office setting for daily operations, such as computers, printers, and furniture.

Cash Account

An account that records all transactions involving cash, including receipts and payments, reflecting the company's cash flow.