Scenario 2 A monopoly firm maximizes its profit by producing Q = 500 units of ou

Question

Scenario 2
A monopoly firm maximizes its profit by producing Q = 500 units of output. At that level of output, its marginal revenue is $30, its average revenue is $60, and its average total cost is $34.


Refer to Scenario 2. The firm's profit-maximizing price is
a. $30.
b. between $30 and $34.
c. between $34 and $60.
d. $60.


Refer to Scenario 2. At Q = 500, the firm's total revenue is
a. $13,000.
b. $15,000.
c. $17,000.
d. $30,000.


Refer to Scenario 2. At Q = 500, the firm's profit is
a. $13,000.
b. $15,000.
c. $17,000.
d. $30,000.


Refer to Scenario 2. At Q = 500, the firm's marginal cost is
a. less than $30.
b. $30.
c. $34.
d. greater than $34.

Explanation / Answer

1)Refer to Scenario 2. The firm's profit-maximizing price is =d. $60. 2)a. $13,000. 3)a. $13,000. 4) $34.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.