To maximize profit, an unregulated natural monopoly will produce at a level where:
A. marginal revenue is greater than marginal cost.
B. marginal revenue is greater than average revenue.
C. marginal revenue is less than marginal cost.
D. marginal revenue is equal to marginal cost.
Answer: D
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Robert Lucas, a Nobel laureate in economics, argues that there are increasing returns to
A) knowledge capital. B) human capital. C) physical capital. D) financial capital.
Suppose the production function for a certain device is q = L + K. If a labor-saving technical change has occurred, which of the following could be the new production function?
A) q = L + 5K B) q = 5 ? (L + K) C) q = 5L + K D) All of the above are possible.
How has the development of the microchip and information technology contributed to increased productivity?
Please provide the best answer for the statement.
There are apartments in Chicago whose rooftops overlook Wrigley Field. On game day you can find free riders on the roof enjoying ____
a. free property rights b. an externality c. a public good d. excess utility