22. Angelo is a wholesale meatball distributor. He sells his meatballs to all th

Question

22. Angelo is a wholesale meatball distributor. He sells his meatballs to all the finest Italian restaurants in town. Nobody can make mewinils hie Angelo. As a result, his is the only business in town that sells meatballs to restaurants. Assuming that Angelo is maximizing his profit, which of the following statements is true? a. The price of meatballs will equal marginal cost. c. The price of meatballs will be less than marginal cost. b. The price of meatballs will exceed marginal cost. d. None of the above is correct Figure #3: $13 12 1F 10 MC ATC Demand MR Quantity (units per hour) RMUNNICHA

Explanation / Answer

23. c) is correct ans

In a Monopoly market we know that the profit maximization condition is given by MR is equal to MC. The corresponding values on the vertical and horizontal Axis gives maximizing price and output respectively

24 d) is correct answer

Profit is equal to the difference between total revenue and total cost .from the corresponding figures and the data the profit =(9-6)×4=3×4=$12

thanks

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