1. A monopolist maximizes prots at the output level at which a. Total revenue is at its greatest, assuming that the rm has both xed and variable costs b. Price equals marginal cost c. Price exceeds marginal cost by the greatest amount d. Marginal revenue equals marginal cost e. None of the above 2. In a monopolistic market structure, if price is above average total cost, the monopolist is a. Earning an economic prot b. Taking an economic loss 0. Earning a normal rate of return d. Minimizing total opportunity costs 3. A monopoly a. Can charge any price it wants. b. Always earns a positive economic prot. c. Is constrained by marginal cost in setting price d. Is constrained by demand in setting price e. All of the above TABLE 1 Price = AR Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost $100 2 $200 --- $150 ------ $90 3 $270 $70 $175 $25 $82 4 $328 $58 $205 $30 $75 5 $375 $47 $252 $47 $65 6 $390 $15 $312 $60 Answer questions #4 - #7 based upon information provided in Table 1. 4. A prot-maximizing single-price monopolist will set the price at: a. $90 per unit b. $82 per unit c. $65 per unit d. $75 per unit 5. Average total cost at the prot-maximizing level of output equals a. $53.00 b. $58.33 c. $59.00 d. $50.40 c. There is not enough information to answer this