The Figure Above Shows a Monopoly's Total Revenue and Total

question 53

Multiple Choice

The figure above shows a monopoly's total revenue and total cost curves.
-Using the figure above,which of the following statements is (are) correct?
i.MR = MC when 3 haircuts are produced.
ii.If the firm charges each customer the same price for a haircut,the price of a haircut is $42.
iii.The firm's MC equals $30.

• A) i only
• B) ii only
• C) i and ii
• D) i and iii
• E) None of the above is correct.

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Definitions:

Credit

A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, generally with interest.

Receipt

A written acknowledgment that something of value has been transferred from one party to another.

Statute of Frauds

A rule of law that mandates specific contract types to be documented in writing and signed by the accountable party for them to be valid and enforceable.

Oral Agreement

A verbal contract in which the terms have been agreed upon through spoken communication, legally binding in many scenarios but harder to prove in court.