When a monopolist chooses the level of output where marginal cost equals marginal revenue:
A. profits are maximized.
B. price is set at marginal revenue.
C. price is equal to average total costs.
D. total revenue is maximized.
A. profits are maximized.
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The costs in time and other resources that parties incur in the process of facilitating an exchange of goods and services are called
A) implicit costs. B) explicit costs. C) enforcement costs. D) transactions costs.
Suppose that private saving is $1590 billion, investment is $1945 billion, and the current account balance is -$489 billion. From the uses-of-saving identity, how much is government saving?
A) -$134 billion B) -$844 billion C) $844 billion D) $134 billion
The Social Security payroll tax tends to be regressive
a. True b. False Indicate whether the statement is true or false
At a firm's profit-maximizing level of output, its price is $200 and its short-run average total cost is $225 . The firm
a. has a profit of $25 per unit of output. b. should shut down if its short-run average fixed cost is less than $25. c. has a loss of $100 per unit of output. d. should shut down if its short-run average variable cost exceeds $25.