A monopolist will operate where
a. MR = MC and charge a price equal to marginal revenue.
b. MR = MC and charge a price equal to marginal cost.
c. MR = MC and charge a price corresponding to demand at that level.
d. MC = MR and charge a price corresponding to average cost.
c
You might also like to view...
Why does the absence of well-defined property rights serve as a stumbling block for the application of the Coase theorem?
What will be an ideal response?
By reducing consumption expenditures, poor nations should be able to completely finance their own capital investment.
Answer the following statement true (T) or false (F)
We derive the demand curve for X from indifference curves and a budget constraint by changing the
A. consumers? preferences. B. price of X. C. price of Y. D. level of income.
Assume a purely competitive constant-cost industry is initially at long-run equilibrium. Now suppose that a decrease in consumer demand occurs. After all the long-run adjustments have been completed, the new equilibrium price:
A. And industry output will be less than the initial price and output B. Will be the same as the initial price, and the output will be less C. Will be greater than the initial, but the new output will be less D. Will be less than the initial price, but the new output will be greater