A monopoly firm maximizes its profit by producing Q = 500 units of output. At that level of output, its marginal revenue is $30, its average revenue is $60, and its average total cost is $34.
The firm's maximum profit is
a. $13,000.
b. $15,000.
c. $17,000.
d. $30,000.
Answer: A
Microeconomics
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