Refer to Scenario 15-1. At Q = 500, the firm's marginal cost is

A) less than $40.
B) $40.
C) $44.
D) greater than $44.

Question

Refer to Scenario 15-1. At Q = 500, the firm's marginal cost isA) less than $40.B) $40.C) $44.D) greater than $44.

Ayden Crowley · Accepted Answer

Final Answer : B, Explanation :  In a profit-maximizing condition for a monopoly, marginal cost (MC) equals marginal revenue (MR). Since the marginal revenue at Q = 500 is $40, the marginal cost must also be $40.

Refer to Scenario 15-1. At Q = 500, the firm's marginal cost is

A) less than $40.
B) $40.
C) $44.
D) greater than $44.

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