A monopolist will never produce at a quantity where the:

A. MR < 0.
B. MR > 0.
C. P > MR.
D. MR= MC.


Answer: A

Economics

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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher

Economics

Which of the following is true?

A) MSC = MC + Marginal external cost B) MC = Marginal external cost - MSC C) MC = Marginal external benefit + MSC D) MSC = Marginal external cost + marginal external benefit E) MSC = Marginal external cost - marginal external benefit

Economics

In the short run, a monopolistically competitive firm chooses

A) both its price and its quantity. B) its price but not its quantity. C) its quantity but not its price. D) neither its price nor its quantity.

Economics

Suppose the United States experiences a long period of inflation relative to other countries. How will this affect U.S. net exports?

What will be an ideal response?

Economics