The monopolist always maximizes its profits by producing the amount of output that sets the marginal revenue equal to zero
Indicate whether the statement is true or false
FALSE
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If the price of rubber (an input to the production of tires) increases:
A. the supply of tires will decrease. B. the demand for tires will decrease C. the demand for tires will increase. D. the supply of tires will increase.
Assume there is an improvement in the technology used to produce Blu-ray disc players. What could be expected to happen to the equilibrium price and quantity in the market for Blu-ray disc players?
A) Equilibrium price would increase and equilibrium quantity would decrease. B) Equilibrium price and quantity would both decrease. C) Equilibrium price would decrease and equilibrium quantity would increase. D) Equilibrium price and quantity would both increase.
Traditionally, bonds have been issued with coupons that bondholders redeem every
A) year. B) quarter. C) six months. D) month.
If the firm were to produce 154.92 units of output,
a. efficient scale would be realized. b. ATC would be at its minimum value c. the firm would sustain a loss of more than $2.000 d. All of the above