Refer to Figure 24.3. Suppose this good could somehow be produced at no cost (that is, the total cost at any level of output was zero). This single-price monopoly firm would maximize profit by
A. Raising the price as high as possible until the quantity demanded began to decrease.
B. Producing Q3 and charging P3.
C. Producing Q2 and charging P2.
D. Producing an infinite amount and selling at the highest price possible.
Answer: C
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A savings account is an example of consumer income.
Answer the following statement true (T) or false (F)
Give two reasons why Social Security is compulsory for most workers
What will be an ideal response?
If a firm's output equals 10, product price equals $5.00, TFC = $8.00, and TVC = $60.00, then AVC would equal
a. $.80 b. $1.00 c. $6.00 d. $60.00 e. $8.00
What basket of goods is used to construct the CPI?
a. a random sample of all goods and services produced in the economy b. the goods and services that are typically bought by consumers as determined by government surveys c. only food, clothing, transportation, entertainment, and education d. the least expensive and the most expensive goods and services in each major category of consumer expenditures