Under which of the following conditions would a profit-maximizing monopolist necessarily raise price?
A. If product demand was price-inelastic
B. If marginal revenue was greater than marginal cost.
C. If product demand was price-elastic.
D. If marginal cost was greater than marginal revenue.
Answer: D
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Refer to Pollutants. Suppose transactions costs are zero. Also suppose the chemical plant is not liable for the farm's crop damages and can continue to pollute the stream. What will be the result of private bargaining between the farm and the chemical plant?
A chemical plant's production adds pollutants to a stream which irrigates a farm's crops. The pollutants damage the farm's crops, increasing the firm's costs by $800 per month. The crop damage may be eliminated in two ways: the chemical plant can install a new filtering system costing $300 per month, or the farm can install a new irrigation system costing $600 per month. a. The chemical plant will pay the farm $800 per month in crop damages. b. The farm will bear the $800 per month cost of crop damages. c. The chemical plant will install the new filtering system. d. The farm will install the new irrigation system.
Consider the following:
(i) Define the term diminishing marginal returns to labor. When diminishing marginal returns to labor exist, what can be said about the firm's cost curves? (ii) Define the term decreasing returns to scale. When decreasing returns to scale exist, what can be said about the firm's cost curves?
Thomas Schelling's most notable work dealt with ________, which lead to his advising role for the film Dr. Strangelove
A) neighborhood segregation B) nuclear annihilation C) medical malpractice D) psychotherapy
If K = 3000, n = 0.02, and d = 0.07, then investment of ________ will hold (K/N) constant
A) 105 B) 150 C) 270 D) 420