A profit-maximizing monopolist
a. is just as socially efficient as a perfectly competitive firm in allocating resources to production since she, too, seeks the largest return on his investment.
b. produces an output level at which marginal utility exceeds marginal cost.
c. produces more output than a perfectly competitive industry.
d. always produces in the inelastic region of his demand curve.
b
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Ellie has been working for an engineering firm and earning an annual salary of $80,000 . She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of
deposit on which she was earning annual interest of $500 . According to an economist, which of the following revenue totals will yield Ellie's business $50,000 in economic profits? a. $55,200 b. $100,200 c. $132,500 d. $185,700
Average fixed cost is equal to
A) the amount of total cost that does not change as output changes in the short run. B) fixed cost divided by the quantity of output produced. C) fixed cost multiplied by the quantity of output produced. D) average total cost plus average variable cost.