Which of the following statements is FALSE?
A) An unregulated, profit-maximizing monopolist will not operate in the inelastic portion of the demand curve.
B) The marginal revenue earned by a monopolist will always be less than the product's price.
C) Typically there are numerous very close substitutes for the product of a monopolist.
D) For a profit-maximizing monopolist, marginal revenue equals marginal cost.
Answer: C
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Which of the following statements is correct?
A) The markup pricing rule that is derived from the rule for profit maximization can be used as a substitute for determining the profit-maximizing level of output by equating marginal revenue and marginal cost. B) It is reasonable to assume that a profit-maximizing firm will never operate in the inelastic portion of its demand curve. C) The ability of a profit-maximizing firm to mark up price above average cost is unaffected by the price elasticity of demand for the firm's output. D) The markup factor and the price elasticity of demand are positively related, i.e., as the price elasticity of demand increases, the markup factor that the profit-maximizing firm can apply to its marginal cost in setting price increases as well.
Supply chain management refers to
A) the contracts put in place to manage a firm's suppliers. B) the decisions around which stages of production to handle internally and which to buy from others. C) how the firm compensates the employees who work on the firm's internal stages of production. D) the 19th century practice of having barges move downstream with the flow of the river.
One reason a computer manufacturer may produce its own microchips rather than buy them is that it can maintain control over production quality
a. True b. False
After a corporation issues stock, the stock
a. cannot be resold. b. can be resold only if the corporation wants to buy it back. c. can be resold on exchanges; the resale will raise additional funds for the corporation. d. None of the above are correct.