If a Monopolist's Price Is $50 at 63 Units of Output

question 65

Multiple Choice

If a monopolist's price is $50 at 63 units of output, and marginal revenue equals marginal cost, and average total cost equals $43, then what is the firm's total profit?

• A)$3150.
• B)$2709.
• C)$441.
• D)$7.

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Definitions:

Transfer Price

The price charged for goods or services sold between divisions, subsidiaries, or companies under the same control.

Northern Division

Typically refers to a geographical or organizational segment of a business located in the northern part of a country or region.

Transfer Price

The price charged for goods or services transferred between departments or divisions of the same company.

Variable Cost

Costs that vary directly with the level of production or sales volume, increasing as business activity rises and decreasing as it falls.