A firm can maximize profit (net benefit) by choosing to produce that level of output at which
A. the additional revenue from the last unit sold equals the additional cost of that unit.
B. the additional revenue from the last unit sold is just a little more than the additional cost of that unit.
C. the difference between the additional revenue from the last unit sold and the additional cost of that unit is maximized.
D. total revenue equals total cost.
Answer: A
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A pure monopolist is selling 7 units at a price of $12. If the marginal revenue of the 8th unit is $4, then the price of the 8th unit is
A) $10. B) $11. C) greater than $12. D) $4.
The monopolistically competitive firm will charge a price which is more than that charged by a perfectly competitive firm
a. True b. False Indicate whether the statement is true or false
Refer to the accompanying table. Total utility ________ as additional apples are consumed, but marginal utility ________ with each additional apple consumed.Number of ApplesTotalUtility120235345450545
A. first decreases then increases; decreases B. first increases then decreases; decreases C. first increases then decreases; increases D. first decreases then increases; increases
Monica grows coconuts and catches fish. Last year she harvested 1500 coconuts and 600 fish. She values one fish as having a worth of three coconuts. She gave Rachel 300 coconuts and 100 fish for helping her to harvest coconuts and catch fish, all of which were consumed by Rachel. Monica consumed the remaining fish and coconuts. In terms of fish, total consumption by both Monica and Rachel would equal
A. 700 fish. B. 900 fish. C. 1100 fish. D. 2700 fish.