Suppose That the Profit Maximizing Level of Output for the Monopolist

question 104

Multiple Choice

Suppose that the profit maximizing level of output for the monopolist is 100 units, and ATC = $45.00; MC = $35.00; MR = $35.00; P = $60.00. What is the monopoly's profit?

• A) -$1000
• B) $4500
• C) $5000
• D) $1500

---

Definitions:

Total Job Cost

The total cost associated with producing a specific job, including materials, labor, and overhead costs.

Unit Product Costs

The cost assigned to a single unit of product, encompassing direct materials, labor, and overhead.

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage of the cost.

Selling Price

The amount a buyer pays to purchase a product or service from a seller.