A monopolist is maximizing profit at an output rate of 1,000 units per month. At this output rate, the price that its customers are willing and able to pay is $8 per unit, average total cost is $5 per unit, and marginal cost is $6 per unit
It may be concluded that at this monthly output rate, marginal revenue is A) $5 per unit, and the monopolist earns zero economic profits.
B) $6 per unit, and the monopolist earns economic profits of $2,000 per month.
C) $6 per unit, and the monopolist earns economic losses of $1,000 per month.
D) $6 per unit, and the monopolist earns economic profits of $3,000 per month.
D
You might also like to view...
A medium of exchange is
A) any asset that sellers will accept as payment. B) a measure by which prices are expressed. C) an asset that is used to settle future debts. D) the thing traded when barter takes place.
To examine a real-world issue, economists look at the real-world results to see how they differ from those of a free market
a. True b. False Indicate whether the statement is true or false
For the two year period ending in 2008-2009, what has been the number of bank failures?
a. About 500 b. About 2,000 c. Fewer than 150 d. More than 5,000 e. Fewer than 1,000
Bank regulators are concerned about the safety of depositors because
a. bank failures were common throughout most of U.S. history and have even occurred in recent decades. b. in the absence of federal insurance, depositors would lose their money if a bank failed. c. nervous depositors may rush to withdraw their accounts and produce a "run" that could threaten even a sound bank. d. All of the above are correct.