Which of the following statements best describes the price, output, and profit conditions of monopoly?
a. Price will equal marginal cost at the profit-maximizing level of output and profits will be positive in the long-run.
b. Price will always equal average variable cost in the short-run and either profits or losses may result in the long run.
c. All of the answers are correct.
d. In the long-run, positive economic profit will be earned.
d
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Which of the following methods is not used to calculate GDP?
A. The sum of all the final goods and services produced by a country’s resources B. The sum of all factor payments plus depreciation and indirect business taxes C. The sum of all values added at each stage of production D. The sum of all spending on final goods and services
Refer to the figure above. What is the domestic price of chairs in Lithasia in the absence of trade?
A) $2 B) $3 C) $4 D) $6
What are the effects of an expansionary monetary policy on interest rates and output in an open economy with floating exchange rates?
What will be an ideal response?
Prices are regarded as sticky in ________
A) new Keynesian and traditional Keynesian theory B) real business cycle and new Keynesian theory C) real business cycle and traditional Keynesian theory D) traditional Keynesian, new Keynesian and real business cycle theory