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 Mechanism

The way in which prices rise and fall as a result of changes in supply and demand, allocating resources through the economy.

Equitable Distribution

The fair and just distribution of economic benefits across a society, aiming for a balanced allocation of wealth and opportunities.

Efficient Allocation

The process by which resources are optimally distributed to meet the needs and maximize the welfare of the economy or market.

Soviet Model

An economic and political system found in the former Soviet Union, characterized by state ownership of resources, central planning, and one-party rule.