If the marginal revenue of a producer exceeds his marginal cost:
A) profit is maximized.
B) profit is minimized.
C) additional production enhances profits.
D) additional production reduces profits.
C
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The Webb-Pomerene Act of 1918 prohibits price fixing and other anticompetitive agreements that pertain solely to goods for export
Indicate whether the statement is true or false
In natural monopoly, AC continuously declines due to economies in distribution or in production, which tends to found in industries which face increasing returns to scale. If price were set equal to marginal cost, then:
a. price would equal average cost. b. price would exceed average cost. c. price would be below average cost. d. price would be at the profit maximizing level for natural monopoly e. all of the above
Increases real GDP
What will be an ideal response?
If a market is controlled by one perfect price discriminator who is able to charge each consumer the highest price that consumer is willing to pay, the seller will produce output until the price paid by the last consumer is equal to the marginal cost of making the good. That is, the price of the last good equals the marginal cost of making the good. If welfare is measured as consumer surplus plus
producer surplus, compare this market structure to a competitive market in terms of efficiency and equity. What will be an ideal response?