For perfectly competitive firms, marginal revenue ________ price; for monopolists marginal revenue ________ price.
A. equals; is less than
B. equals; equals
C. equals; is greater than
D. is less than; equals
Answer: A
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An example of odious debt would be debts on the part of a nation that were incurred by a dictator for the well being of his family
Indicate whether the statement is true or false
The increase in extremely expensive lifesaving treatments is a primary cause of the rise in health insurance because _____
a. people want to protect against low probability, expensive events b. people view insurance as a down payment on a predicable event c. people want to protect against low probability, inexpensive events d. individuals want to protect themselves from being gouged by doctors who know they need a lifesaving operation
If an individual can produce a good or service with a lower opportunity cost than another individual, then he or she is said to have the comparative advantage
a. True b. False Indicate whether the statement is true or false
If at the profit-maximizing level of output, a monopolist's average-total-cost curve lies above its demand curve, then:
a. the firm should shut down in the short run. b. the firm would earn economic losses. c. the firm would earn economic profits. d. the firm should increase its output. e. the firm should decrease its output.