If a monopoly firm produces the quantity of output at which MR = MC, and charges a price greater than average total cost, it necessarily

A. Minimizes the difference between total fixed cost and total variable.
B. Maximizes the difference between total fixed cost and total variable cost.
C. Maximizes total revenue.
D. Earns profit.
E. A, b, and d

Question

08-07-2024
Business

Answered

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If a monopoly firm produces the quantity of output at which MR = MC, and charges a price greater than average total cost, it necessarily

A. Minimizes the difference between total fixed cost and total variable.
B. Maximizes the difference between total fixed cost and total variable cost.
C. Maximizes total revenue.
D. Earns profit.
E. A, b, and d

Sagot :

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