A profit-maximizing monopolist charges a price of $12 . The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $6 . Average total cost for 10 units of output is $5 . What is the monopolist's profit?
a. $60
b. $70
c. $100
d. $120
b
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Which of the following demonstrates international interdependence?
a. the oil shocks b. the debt crisis c. global warming d. all of the above.
Economic growth depends on many factors including adherence to ____________ rights.
a. contractual b. business c. animal d. immigrant
Advocates of the active approach argue that even when there is a large contractionary gap,
a. the downward renegotiation of wages necessary to increase the short-run aggregate supply curve and real output may take a long time, and during this period of adjustment the public bears a high cost in terms of foregone economic output. b. the upward renegotiation of wages necessary to decrease the short-run aggregate supply curve and real output may take a long time, and during this period of adjustment the public bears a high cost in terms of foregone economic output. c. the upward renegotiation of wages necessary to decrease the short-run aggregate supply curve and real output may take a long time, and during this period of adjustment the public bears a high cost in terms of foregone economic output. d. the downward renegotiation of wages necessary to decrease the short-run aggregate supply curve and real output may take a long time, and during this period of adjustment the public bears a high cost in terms of foregone economic output.
Figure 8.12 shows a demand and costs of an unregulated monopoly. This firm must:
A. be a natural monopoly. B. have an exclusive government license. C. be a monopoly because it has a patent. D. be operating in a contestable market.