If a Profit Maximizing Monopolist Sells Output for $100, Then

question 32

Multiple Choice

If a profit maximizing monopolist sells output for $100, then we know that its marginal revenue is

• A)more than $100 if it is a perfect price discriminator.
• B)less than $100 if it is a single price monopolist.
• C)equal to $100 in all cases.
• D)less than $100 if it is a perfect price discriminator.

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Definitions:

Overhead Cost

Overhead cost refers to ongoing business expenses not directly tied to creating a product or service, such as rent, utilities, and insurance.

Work in Process

Represents goods that are in the process of being manufactured but are not yet complete.

Indirect Materials

Materials used in the production process that do not become an integral part of the final product and are not directly traceable to specific goods.

Nonmanufacturing Costs

Expenses not related to the production of goods, such as selling, administrative, and financial costs.