A monopolist maximizes profits where marginal revenue equals marginal cost.

a. true
b. false


Answer: a. true

Economics

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A) promoting foreign direct investment. B) subsidizing education and training. C) enacting policies to promote property rights. D) promoting policies to enhance saving.

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A monopoly:

A. is constrained because its decisions cannot affect market price. B. is constrained by demand. C. faces a horizontal demand curve. D. is constantly threatened by the entry of new firms.

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Marginal revenue product is defined as

a. the total revenue generated by inputs b. the additional output produced by one additional unit of a resource, other things constant c. the marginal revenue from each unit of output d. the total revenue divided by the number of resources employed e. the additional revenue generated by one additional unit of a resource, other things constant

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A household that expects a decrease in disposable income in the future will _____

Fill in the blank(s) with the appropriate word(s).

Economics