At an Output of 1,000 Units,a Monopoly Firm's Average Revenue

question 63

Multiple Choice

At an output of 1,000 units,a monopoly firm's average revenue is $40,its marginal revenue is $30,its marginal cost is $30,its average variable cost is $35,and fixed costs are $5,000.Given this information,we can conclude that the monopolist:

• A)is earning zero economic profit.
• B)is earning an economic profit equal to $5,000.
• C)is making an economic loss and should shut down.
• D)should increase output to maximize profit.

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Definitions:

Sensory Neurons

Specialized neurons responsible for converting external stimuli from the environment into internal electrical impulses for the brain.

Sense Organs

Body parts responsible for receiving and processing sensory stimuli (eyes, ears, nose, skin, and tongue).

Spinal Cord

The spinal cord is a long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column. It transmits nerve signals from the brain to the rest of the body.

Neural Impulse

An electrical signal that travels along neurons, facilitating communication within the nervous system.