A profit-maximizing monopolist will produce at the point where:
a. total revenue = total costs.
b. marginal revenue = marginal cost.
c. average revenue = average cost.
d. the difference between average revenue and average cost is maximized.
Ans: b. marginal revenue = marginal cost.
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Usually, the cost of capital for newly issued stock is ________ the cost of retained earnings
A) lower than B) higher than C) same as D) either higher or lower than
When a person takes cash to the bank and deposits it in a checking account,
a. that act directly and immediately reduces the amount of money in the economy. b. that act directly and immediately increases the amount of money in the economy. c. that act directly and immediately changes one kind of money into another kind of money. d. None of these.
Suppose a monopolist faces the following demand curve.
This demand curve can be used to determine:
A. the impact of advertising on demand. B. the total cost associated with producing different levels of output. C. the marginal cost associated with producing different levels of output. D. the monopolist's total revenue at different price and quantity combinations.
When individual supply curves shift, ceteris paribus, the market supply curve shifts.
Answer the following statement true (T) or false (F)