Graphically, how does a monopolistically competitive firm determine its profit-maximizing price?
A) It accepts the price set by the industry-wide forces of supply and demand.
B) Graphically, it finds the place where MR = MC and charges the price directly to the left of that point.
C) The firm's pricing structure is set by government regulators.
D) The firm determines its profit-maximizing output and then charges the price associated with the point on its demand curve directly above that quantity.
Answer: D
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A) the accumulation of past budget deficits. B) tax revenues minus government spending. C) the total value of U.S. Treasury bonds outstanding. D) government spending minus tax revenues.
Higher input prices result in
A) upward shifts of MC and reductions in output. B) upward shifts of MC and increases in output. C) downward shifts of MC and reductions in output. D) downward shifts of MC and increases in output. E) increased demand for the good the input is used for.
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a. make recessions and inflationary episodes more severe b. make recessions and inflationary episodes less severe c. make recessions more severe and inflationary episodes less severe d. make recessions less severe and inflationary episodes more severe e. have no effect on the severity of recessions and inflationary episodes