-A Monopolist Is Maximizing Profit at an Output Rate of 100

question 202

Multiple Choice

-A monopolist is maximizing profit at an output rate of 100 units per week. At this output rate, the price that its customers are willing and able to pay is $8 per unit, average total cost is $5 per unit, and marginal cost is $6 per unit. It may be concluded that at this monthly output rate, marginal revenue is

• A) $5 per unit, and the monopolist earns zero economic profits.
• B) $6 per unit, and the monopolist earns economic profits of $200 per week.
• C) $6 per unit, and the monopolist earns economic losses of $100 per week.
• D) $6 per unit, and the monopolist earns economic profits of $300 per week.

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Definitions:

Flame Burn

A burn injury caused by direct contact with open flame, resulting in tissue damage and requiring immediate medical attention.

Electric Burn

Tissue damage caused by electricity passing through the body, potentially causing burns, internal injuries, or disturbances in heart rhythm.

Aspirated

The act of inhaling foreign objects into the airway, which can lead to breathing difficulties or respiratory infections.

Nutritive Value

Refers to the nutritional content of a food item, including vitamins, minerals, proteins, and calories it provides.