5. Suppose when a monopolist produces 82 units its average revenue is $10 per unit, its marginal revenue is $7 per unit, its marginal cost is $4 per unit, and its average total cost is $2 per unit. What can we conclude about this monopolist? a. The monopolist is currently maximizing profits, and its total profits are $375. b. The monopolist is currently maximizing profits, and its total profits are $300. с. The monopolist is not currently maximizing profits; it should produce more units and charge a lower price to maximize profits. d. The monopolist is not currently maximizing profits; it should produce fewer units and
5. Suppose when a monopolist produces 82 units its average revenue is $10 per unit, its marginal revenue is $7 per unit, its marginal cost is $4 per unit, and its average total cost is $2 per unit. What can we conclude about this monopolist? a. The monopolist is currently maximizing profits, and its total profits are $375. b. The monopolist is currently maximizing profits, and its total profits are $300. с. The monopolist is not currently maximizing profits; it should produce more units and charge a lower price to maximize profits. d. The monopolist is not currently maximizing profits; it should produce fewer units and
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.6P
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