Refer to the graph shown. If hamburgers are produced by a pure monopoly that maximizes profit, the monopoly firm will:
A. earn $200 economic profit per day.
B. earn $100 per day.
C. go out of business.
D. just cover its opportunity cost.
Answer: A
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The bond demand curve is ________ sloping, indicating a(n) ________ relationship between the price and quantity demanded of bonds, everything else equal
A) downward; inverse B) downward; direct C) upward; inverse D) upward; direct
When many banks choose to hold excess reserves, ______________ monetary policy may not work well.
a. tight b. free c. expansionary d. contractionary
An increase in price causes an increase in total revenue when demand is
a. elastic.
b. inelastic.
c. unit elastic.
d. All of the above are possible.
When average total cost is declining, then
A. marginal cost must be less than average total cost. B. marginal cost must be greater than average total cost. C. average total cost must be greater than average fixed cost. D. average variable cost must be declining.