A monopolist will maximize profits by producing a quantity specified by setting marginal revenue equal to marginal cost.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Ethiopia provides a counterexample to the claim
A) central economic planning doesn't work well. B) nations are poor because they are subject to exploitation by nations with superior military power. C) a nation can move to the ranks of the wealthiest in the world with few natural resources. D) the rule of law is necessary for economic growth.
An open economy is an economy that has
A) its own stock market. B) governmental regulations regarding the number of hours retail establishments must remain open on a daily basis. C) interactions in trade or finance with other economies. D) governmental regulations regarding public information that is included in corporate finance reports.
Based on the CBO's projections of governments revenue and expenditure, if entitlement programs remain large and unfunded, the current fiscal policy of the federal government
A) will lead to a larger, but sustainable debt-to-GDP ratio. B) will have to become more expansionary to remain sustainable. C) is not sustainable. D) will still keep the debt-to-GDP ratio relatively stable.
If the social marginal cost of a good is very high relative to the private marginal cost, then a monopoly will most likely
A) produce more than the social optimum. B) produce less than the social optimum. C) produce the social optimum. D) produce zero pollution.