Which Statement Is Correct

question 73

Multiple Choice

Which statement is correct?

• A) In the short run,the pure monopolist will maximize total profits by producing at that level of output where the difference between price and average total cost is greatest.
• B) In the short run,the pure monopolist will charge the highest price it can get for its product.
• C) Because of its ability to administer prices,the pure monopolist can increase its price and increase its volume of sales simultaneously.
• D) Pure monopolists do not always realize economic profits.

---

Definitions:

Total Revenues

The complete amount of income generated by a company through its various business activities.

Market Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output that producers are willing and able to sell at that price.

Acceptable Prices

Prices that consumers feel are fair for products or services, and are willing to pay.

Total Revenues

The overall amount of money received by a firm from sales of its products or services, before any costs are deducted.