To maximize profit, a monopolist should produce the level of output at which
a. price equals marginal cost
b. price equals marginal revenue and marginal cost
c. price equals marginal revenue
d. marginal revenue equals marginal cost
e. price equals average total cost
D
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The figure above shows that the U.S. net ________ surplus from the tariff is ________
A) loss of; $30 million per year B) gain in; $20 million per year C) loss of; $10 million per year D) gain in; $55 million per year E) gain in; zero
A cost that involves spending money is
A) an explicit cost. B) an implicit cost. C) an opportunity cost. D) an indirect cost.
State governments in the United States can raise revenue by all the following means except
A) increasing income taxes. B) increasing taxes on corporate profits. C) increasing sales taxes. D) increasing the money supply.
The monopolist is always constrained by:
A. the amount demanders are willing to buy at any given price. B. his production capacity. C. the barriers to entry. D. government regulation.