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 = $45.00. What is the monopoly's profit?
A) -$1000
B) $4500
C) $0
D) $3500
C
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Investment spending is procyclical. In the short run, are changes in investment affected more by changes in the expected marginal product of capital, or by changes in the user cost of capital?
What will be an ideal response?
Which of the following happens when oligopolistic firms decide to cooperate? a. Barriers to entry are relaxed. b. Net social welfare increases. c. The same level is produced as in a monopoly
d. Consumer surplus is the same as it would be in a competitive market.
Refer to the graph shown. A decrease in input prices in the short run is likely to cause a movement from:
A. B to D. B. C to A. C. B to A. D. C to D.
Which of the following best expresses the present value of $500 that you have to wait four years and three months to receive?
A. ($500/4.25) × (1+ i) B. ($500/4) × (1 + i)3 C. $500 × 4.25 × (1 + i) D. $500/(1 + i)4.25