In the above figure, the area of rectangle ABHG represents the monopolist's
A) maximized economic profits.
B) maximized total revenue.
C) average total profits.
D) total costs.
Ans: A) maximized economic profits.
You might also like to view...
A monopoly will price its product:
a. where total revenue is maximized. b. where total costs are minimized. c. at that point on the market demand curve corresponding to an output level in which marginal revenue equals marginal cost. d. at that point on the market demand curve which intersects the marginal cost curve.
Marginal revenue is the addition to total revenue resulting from the addition of one unit to total output
a. True b. False Indicate whether the statement is true or false
To an economist, maximizing profit is:
A. maximizing the value of the firm. B. minimizing the future risks. C. maximizing the current year's profits. D. minimizing the permanent total costs.
The _____ is the overall economic effect of government spending increases.
A. spending effect B. multiplier effect C. fiscal effect D. incentive effect