In a monopolistic market structure, if price is above average total cost, the monopolist is
|a.||earning an economic profit.|
|b.||taking an economic loss.|
|c.||minimizing total fixed costs.|
|d.||minimizing total variable costs.
____ 15. Refer to Exhibit 24-4. The profit-maximizing single-price monopolist’s maximum profit is
____ 16. Refer to Exhibit 24-4. What dollar amounts go in blanks (A), (B), (C), (D), and (E), respectively?
____ 17. Refer to Exhibit 24-4. What dollar amounts go in blanks (O), (P), (Q), and (R), respectively?
____ 18. Refer to Exhibit 24-8. A profit-maximizing single-price monopolist will set the price at
____ 19. When the monopoly firm sells two units of its product, it earns total revenue of $260 and it incurs a total cost of $210. If its marginal revenue for the second unit was $110, what was the marginal revenue of the first unit?
____ 20. Refer to Exhibit 24-9. A single-price monopolist that seeks to maximize profits will sell __________ units and charge a per-unit price of __________ dollars.
____ 21. Refer to Exhibit 24-9. A single-price monopolist earns a total profit of __________ when it produces and sells 20 units of its good.