Which of the following is true under monopoly?
A. P = MR
B. P > ATC
C. P > MC
D. P = ATC
Answer: C
You might also like to view...
A. What is the defining characteristic of a natural monopoly?
b. Should the government break up a natural monopoly into two or more firms to make the industry more competitive? c. Suppose the government wants to ensure that some of the benefits of declining average total cost are passed on to consumers. To achieve this goal, it requires that the natural monopoly set its price equal to marginal cost. Is this a feasible goal? Explain. d. What is an alternative to marginal cost pricing that ensures that consumers reap some of the benefits of declining average total cost?
In the IS-LM diagram, we are in "general equilibrium"
A) at all points. B) at all points on the LM curve. C) at all points on the IS curve. D) only at the intersection of the IS and LM curves.
The marginal revenue product is the extra revenue the firm receives by hiring one additional unit of input.
Answer the following statement true (T) or false (F)
What is the most accurate description of the value of a worker to the firm?
A. the firm's total output when holding capital fixed B. the dollar value of the average worker's output C. the dollar value of the worker's output D. the wage E. the firm's average product when holding capital fixed