-If the Firm Maximizes Its Profits,its Marginal Cost Will Be

question 181

Multiple Choice

-If the firm maximizes its profits,its marginal cost will be

• A)$8.
• B)$10.
• C)$12.
• D)$16.

---

Definitions:

Monopoly Market

A market structure characterized by a single seller who has exclusive control over the supply of a product or service, and where there are high barriers to entry for other firms.

Perfectly Competitive

A market structure characterized by many sellers offering identical products, free entry and exit, and full information, leading to price taking behavior.

Output

The total amount of goods or services produced by a firm, industry, or economy.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in its price.