For a Monopolist That Does Not Price Discriminate, Economic Profit

question 138

Multiple Choice

For a monopolist that does not price discriminate, economic profit is maximized in the short run at a price of $140. Marginal revenue at that output level is

• A) equal to $140.
• B) greater than $140.
• C) less than $140.
• D) less than marginal cost.
• E) greater than average revenue.

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Definitions:

Demand Schedule

A grid outlining the quantities of an item or service that people are ready and able to buy across a range of prices.

Marginal Cost

The uptick in aggregate cost due to the output of an extra unit of a product or service.

Monopolist

An entity that is the sole provider of a particular product or service in a market, possessing significant market power and control over prices.

Output

The amount of goods or services produced by a person, machine, factory, or company within a certain period.