The second-order condition for a monopoly maximizing its profit is:
A. (dMR/dQ) < (dMC/dQ).
B. (d2R(Q)/dQ2) ? (d2C(Q)/dQ2) < 0.
C. (d2R(Q)/dQ2) ? (d2C(Q)/dQ2) < 0 or (dMR/dQ) < (dMC/dQ).
D. (d2R(Q)/dQ2) ? (d2C(Q)/dQ2) = 0.
Answer: C
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When a government imposes penalties on both sellers and buyers of an illegal good, the price of the good ________ and the quantity ________
A) falls; decreases B) falls; might increase, decrease, or not change C) rises; might increase, decrease, or not change D) might rise, fall, or not change; decreases
Movements along a money demand curve reflect the effects of changes in the _____
Fill in the blank(s) with the appropriate word(s).
An increase in the income tax rates is an example of...
What will be an ideal response?
The tax base is
A) the minimum amount of tax revenue that government must collect each year. B) the maximum amount of tax revenue that government must collect each year. C) the sum of all incomes earned in the United States. D) the value of all goods, services, incomes, or wealth subject to taxation.