All,except One,of the Following Statements Regarding the Profit-Maximizing Output of the Monopolist

question 19

Multiple Choice

All,except one,of the following statements regarding the profit-maximizing output of the monopolist are correct.Which is false?

• A)At that output,the marginal cost will be equal to the price.
• B)At that output,marginal profit is zero.
• C)At that output,the difference between the total revenue and the total cost will be at a maximum.
• D)At that output,marginal cost will equal marginal revenue.
• E)At that output,average revenue will exceed marginal revenue.

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Definitions:

Variable Manufacturing Overhead

Costs that fluctuate with the level of production output, such as utilities or materials that vary with production volumes.

Direct Labor-hours

The total amount of time spent by workers directly involved in the manufacturing of a product.

Variable Overhead Standards

The budgeted or standard costs associated with variable overheads, which are expected to change in proportion to different levels of production activity.

Direct Labor-hours

Represents the total hours of labor directly involved in manufacturing a product or delivering a service.