When a monopolist is producing at the profit-maximizing output level, the value to consumers of one additional unit of output will
a. exceed the monopolist's marginal cost.
b. equal the monopolist's marginal cost.
c. be less than the monopolist's marginal cost.
d. exceed the price of the additional unit.
A
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If the purchasing power of a dollar is less than the purchasing power of the Mexican peso, purchasing power parity would predict that
A) in the short run, the dollar will appreciate relative to the peso to equalize the purchasing power of the dollar and the peso. B) in the short run, the dollar will depreciate relative to the peso to equalize the purchasing power of the dollar and the peso. C) in the long run, the dollar will appreciate relative to the peso to equalize the purchasing power of the dollar and the peso. D) in the long run, the dollar will depreciate relative to the peso to equalize the purchasing power of the dollar and the peso.
One of the major impacts of restricting immigration is that the:
a. prices of the products produced by unskilled laborers will decline. b. prices of the products produced by unskilled labor will increase. c. supply of labor in agriculture will increase. d. supply of labor in the industrial sector will rise. e. government's expenditure on education and health will rise.
If an oligopolistic manufacturer believes that he faces a kinked demand curve for his product, he thinks his competitors will ______ if he lowers his price and ____ if he raises his price.
A. lower their prices; raise their prices B. lower their prices; not raise their prices C. not lower their prices; raise their prices D. not lower their prices; not raise their prices
For a monopoly, the value of the next worker equals
A) MR ? MPL. B) (price + the effect of increased output on price) ? MPL. C) P(1 + 1/e) ? MPL D) All of the above.