According to the above figure, the profit maximizing price-output combination for the monopolist is a price of
A) 50 cents and an output of 40,000 newspapers per day.
B) 30 cents and an output of 30,000 newspapers per day.
C) 60 cents and an output of 30,000 newspapers per day.
D) 45 cents and an output of 45,000 newspapers per day.
C
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Profit-maximizing employment is the quantity of labor at which
A) marginal revenue product is equal to marginal factor cost. B) marginal revenue product is equal to product price. C) marginal factor cost is equal to marginal revenue. D) marginal factor product is equal to product price.
Why are math and graphics used in economic models?
People decide how much schooling to receive based on
A. the marginal rate of return to schooling. B. their ability to succeed in education programs. C. their discount rate. D. the present value of expected future earnings. E. All of the above factors influence how much schooling one receives.
If the MPC were .75, what change in government spending (in billions of dollars) would be required to cause the equilibrium level of GDP to fall by 100?
A. A decrease of 25. B. A decrease of 50. C. A decrease of 75. D. A decrease of 100.