A monopolist is producing at an output level at which ATC = $50, P = $60, MC = $35, and MR = $45. We can conclude that economic profit cannot be increased. the firm is earning $10 in economic profits. economic profit could be increased by producing more. economic profit could be increased by producing less.
A monopolist is producing at an output level at which ATC = $50, P = $60, MC = $35, and MR = $45. We can conclude that economic profit cannot be increased. the firm is earning $10 in economic profits. economic profit could be increased by producing more. economic profit could be increased by producing less.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A monopolist is producing at an output level at which
ATC = $50, P = $60, MC = $35, and MR = $45. We can conclude thateconomic profit cannot be increased.
the firm is earning $10 in economic profits.
economic profit could be increased by producing more.
economic profit could be increased by producing less.
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