A monopolist maximizes profits by
a. producing an output level where marginal revenue equals marginal cost.
b. charging a price equal to marginal revenue and marginal cost.
c. charging a price where marginal cost equals average total cost.
d. Both a and b are correct.
a
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In general, the optimal amount of medical care is:
A. enough to stay healthy. B. the quantity at which the total cost of the care equals its total benefit. C. as much as one can afford. D. the quantity at which the marginal cost of the care equals its marginal benefit.
The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob's expected utility is
A) a. B) b. C) c. D) d.
Oligopolies can result from any of the following EXCEPT
A) economies of scale. B) vertical mergers. C) government regulation. D) diseconomies of scale.
If Kevin's children run a lemonade stand for a day and sell 200 glasses of lemonade at $0.50 each, their total revenues are
a. $100. b. $199.50. c. $200. d. $400.