A monopolist will maximize profit by producing the level of output at which
A. the last unit of output produced adds the same amount to total revenue as to total cost.
B. the firm's total revenue exceeds total cost by the largest amount.
C. marginal revenue equals marginal cost.
D. both a and b
E. all of the above
Answer: E
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If there are 1,000 rutabaga farms, all perfectly competitive, an increase in the price of fertilizer used for growing rutabagas will
A) have no effect on the total quantity of rutabagas supplied, because no farm has enough market power to raise the price. B) have no effect on the total quantity of rutabagas supplied, because each farm's supply curve is a vertical line. C) decrease the total quantity of rutabagas supplied, because each farm's supply curve shifts leftward. D) reduce the total quantity of rutabagas supplied, because each farm's supply curve is a horizontal line and will shift upward.
An expansionary monetary policy will
A. increase imports. B. decrease exports. C. increase a current account deficit. D. decrease a capital account surplus.
Discuss Amazon’s barriers of entry over others trying to enter the market
What will be an ideal response?
As the price of samosas (a triangular pastry in India) was raised from 2 to 3 rupees (Indian currency), their quantity demanded fell from 15,000 to 12,000. Rounding to the nearest tenth, the elasticity of demand of samosas is:
A. 1.8. B. 0.6. C. 4. D. impossible to determine because we don't know the exchange rate of the rupee.