Suppose the accompanying figure illustrates the demand curve facing a monopolist.
Suppose this firm maximizes its profits by charging a price of $8 per unit. This implies that the firm's:
A. marginal cost is less than $8.
B. marginal cost is $0.
C. average total cost is $8.
D. marginal cost is $8.
Answer: B
You might also like to view...
The inflation rate can be obtained by ________
A) dividing the nominal GDP by the GDP deflator B) subtracting the real GDP from the nominal GDP C) multiplying the CPI by GDP D) subtracting the growth in real GDP from the growth in nominal GDP E) none of the above
The decrease in Money Supply, the Fed would?
A. Buy government's bonds B. Increase the discount rate C. Decrease the reserve requirement D. All of the above E. None of the above
In economics, we assume rational decisions are made when individuals weigh:
A. the sunk costs versus the opportunity costs of an action. B. the sunk costs versus the benefits of an action. C. the opportunity costs versus the benefits of an action. D. the opportunity and sunk costs versus the benefits of an action.
During the late 1990s, actual output in the United States appears to have exceeded potential output. Under these circumstances, we would eventually expect factor prices to ___________
Fill in the blank(s) with the appropriate word(s).