A monopolist is producing at an output level at which ATC = $5, P = $6, MC = $3, and MR = $4. We can conclude that
A) economic profit could be increased by producing more.
B) economic profit could be increased by producing less.
C) economic profit cannot be increased.
D) the firm is earning $10 in economic profits.
Answer: A
You might also like to view...
A competitive equilibrium is described by
A) a price only. B) a quantity only. C) the excess supply minus the excess demand. D) a price and a quantity.
Internal markets
A) can be useful suppliers of information. B) suffer from some of the same problems that external markets suffer. C) are becoming increasingly popular. D) all of these choices.
To internalize a positive externality:
a. the consumers of a good could receive a subsidy equal to the external benefit resulting from the production or consumption of the good. b. a producer's costs could be increased by an amount equal to the external benefit resulting from the production of the good. c. consumers of the good could pay a tax equal to the external benefit resulting from the production or consumption of the good. d. None of the above are correct.
Actions that are taken to influence the beliefs or actions of rivals in favorable ways are
A. secure strategies. B. mixed strategies. C. pure strategies. D. strategic moves.