Refer to the information provided in Table 13.1 below to answer the question(s) that follow. Table 13.1Price ($)Quantity4.002,0003.502,4003.002,8002.503,2002.003,6001.504,0001.004,400Refer to Table 13.1. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the maximum profit the monopoly can earn?
A. $4,800
B. $5,600
C. $6,000
D. $8,400
Answer: C
You might also like to view...
Human capital refers to which of the following?
A) physical equipment that is made by human laborers, not machines B) manufactured goods that are used to produce other goods and services C) the quantity of goods and services that can be produced by one worker or by one hour of work D) the accumulated knowledge and skills workers acquire from education and training or from their life experiences
Why do economists abstract, and is it appropriate?
Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000 . The annual explicit costs of the materials used to make the cookie jars are $54,000 . Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. What is Christine's annual opportunity cost of the
financial capital that she invested in her business? a. $5 b. $50 c. $100 d. $200
If a firm's total economic cost of producing 50,000 products is $5,000,000, and this output is sold for $5,000,000, we can conclude that the firm will earn an economic profit of:
a. $5,000,000 b. $0 c. $10,000,000 d. $50,000