A monopolist maximizes profits by finding
A. the rate of output where price equals marginal cost.
B. the rate of output where marginal revenue equals marginal cost.
C. the price where average revenue and marginal cost are equal.
D. the price where price exceeds marginal revenue by that largest amount.
Answer: B
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Which of the following statements is true?
a. Goods are scarcer than services in an economy. b. Goods are scarce for neither the poor nor the rich. c. Goods are scarce for both the poor and the rich. d. Goods are scarce for the poor but not for the rich. e. Goods are scarce for the rich but not for the poor.
Unemployment insurance
a. reduces the hardship of unemployment, but it also increases the amount of unemployment. b. reduces the incentive for the unemployed to find and take new jobs. c. causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. d. All of the above are correct.
The program that redistributes the most money is:
A. the Department of Housing and Urban Development's housing programs. B. Supplemental Security Income. C. the Social Security system. D. Aid to Families with Dependent Children.
Refer to the above graph. Which factor will shift AD1 to AD2?
A. An increase in real interest rates. B. An increase in household indebtedness. C. An increase in national income abroad. D. An increase in business taxes.