Suppose a monopolist's marginal revenue equals marginal cost at an output of 100 . If price is $250, and average cost is $50 at this output, compute the monopolist's profit?
a. Profit = $250
b. Profit = $150
c. Profit = $15,000
d. Profit = $20,000
d
You might also like to view...
Increasing marginal returns to labor might occur at low levels of labor input because of
A) increasing average costs. B) differing factor proportions. C) increasing specialization of tasks. D) decreasing use of machinery and increasing use of technology.
The colonies traded internationally with regions other than the United Kingdom. They included all except
(a) Africa (b) China (c) West Indies (d) Southern Europe
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
The tool the Fed uses most often to implement monetary policy is
A. moral suasion. B. control of required reserves. C. control of member banks' credit standings. D. open market operations.