The Following Figure Shows the Revenue Curves of a Monopolist

question 51

Multiple Choice

The following figure shows the revenue curves of a monopolist: Figure 24.6 D: Average revenue
MR: Marginal revenue
In Figure 24.6, 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:

Lower Of Cost

An accounting principle that states inventory should be reported at the lower of its cost or market value.

Ending Inventory

Ending inventory is the value of goods available for sale at the end of an accounting period.

Inventory Total

The aggregate value of a company's raw materials, work in process inventory, and finished goods.

Weighted Average

A calculation method that assigns varying weights to different items or events, used to compute an average that reflects the importance or frequency of those items or events.