The Following Figure Shows the Revenue Curves of a Monopolist

question 65

Multiple Choice

The following figure shows the revenue curves of a monopolist:
Figure 11.6
D: Average revenue
MR: Marginal revenue
-In Figure 11.6, assume that marginal costs are constant at $2,500 and fixed costs are zero. What price and output level would result from perfect competition?

• A)P = $2,500, Q = 400
• B)P = $2,500, Q = 200
• C)P = $5,000, Q = 0
• D)P = $4,000, Q = 400
• E)P = $4,000, Q = 200

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Definitions:

Financial Statements

Formal records of the financial activities and condition of a business, person, or other entity, often including the balance sheet, income statement, and cash flow statement.

Potential Investors

Individuals or entities that have the capability to invest capital in a project or company but have not yet committed to the investment.