The Following Data Show the Relationship Between Output,total Costs,and Total

question 45

Multiple Choice

The following data show the relationship between output,total costs,and total revenue for a pure monopoly Within which of the following output ranges does the firm earn maximum economic profits?

• A) 50 to 60 units
• B) 60 to 70 units
• C) 70 to 80 units
• D) 80 to 90 units In output range 60-70,profit is $300.This is higher than profits in any other range.

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Definitions:

Price Received

The actual amount of money that a seller gets from a buyer for a good or service, after discounts or adjustments.

Market Participants

Individuals or institutions that are involved in buying, selling, and trading in financial markets, including buyers, sellers, investors, speculators, and market makers.

Price Received

The actual amount of money received by a producer or seller from a buyer for a unit of goods or services, after discounts, taxes, and any other adjustments.

Total Surplus

The sum of consumer and producer surplus, representing the total net benefit to society from the production and consumption of a good.