A monopolist can boost up his revenue by
Adjusting both price and output upward
Reducing total output to match price
Increasing price
Reducing price
Correct answer is B
A monopolist can determine its profit-maximizing price and quantity by analyzing the marginal revenue and marginal costs of producing an extra unit. If the marginal revenue exceeds the marginal cost, then the firm can increase profit by producing one more unit of output
One of the characteristics of a monopolist is that, he can influence
Quantity produced by other producers
Prices charged by other producers
Both price and quantity
Price or quantity
Correct answer is C
Monopoly characteristics include profit maximizer, price maker, high barriers to entry, single seller, and price discrimination.
A perfect competitor will continue to expand output up to the point where
TC > TR
MR = AR
MC < MR
MC > MR
Correct answer is C
No explanation has been provided for this answer.
Rent and administrative expenses are examples of
Average fixed costs
Average variable costs
Fixed costs
Variable costs
Correct answer is C
Examples of general and administrative expenses are:
Fixed costs are those costs that must be incurred in fixed quantity regardless of the level of output produced.
Given that FC = N500, VC = N1,500, and Q = 50 units. Find the average cost of the product.
N30
N40
N10
N20
Correct answer is B
The Average Cost is the per unit cost of production obtained by dividing the total cost (TC) by the total output (Q). Thus we have;
Average cost = Total cost ÷ Total output(quantity)
Total cost = fixed cost + variable cost
Average cost = 500 + 1500 ÷ 50
2000 ÷ 50 = 40