In maximizing economic profit, the monopolist will
A) choose the highest price that still permits some output sales.
B) equate marginal cost to minimum average total cost.
C) equate price to marginal cost.
D) equate marginal revenue to marginal cost.
Answer: D
You might also like to view...
What characteristic do human and physical capital share?
A) Both are controlled by the government. B) Current costs are incurred for future benefits. C) Their growth depends crucially on the growth of total factor productivity. D) The use of both exhibits rivalry.
In Ordinary Least Squares Regression, the gap between the value of the dependent variable and the predicted value is called
A) the error term. B) the minimizing coefficient. C) the residual. D) the explanatory variable.
A monopolistically competitive firm has the free entry characteristics of ________ and the price setting characteristics of ________
A) an oligopolistic market; perfect competition B) perfect competition; a monopoly C) a monopolistic market; a cartel D) perfect competition; perfect competition
If individuals start paying off the large amount of credit card debt they now hold,
A) the supply of loanable funds will shift rightward. B) the supply of loanable funds will shift leftward. C) the demand for loanable funds will shift rightward. D) the demand for loanable funds will shift leftward. E) an excess demand for loanable funds emerges and persists.