In maximizing economic profit, the monopolist will
A) choose the highest price that still permits some output sales.
B) equate marginal cost to minimum average total cost.
C) equate price to marginal cost.
D) equate marginal revenue to marginal cost.
D
You might also like to view...
Which of the following statements is FALSE?
A) When the relative price of a good falls, the substitution effect always leads the consumer to substitute more of that good for the other good. B) For a normal good, the income effect reinforces the substitution effect. C) For an inferior good, the income effect offsets the substitution effect. D) For an inferior good, the income effect is positive.
If float is predicted to increase because of bad weather, the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves
A) defensive; inject B) defensive; drain C) dynamic; inject D) dynamic; drain
The effect of a legal minimum wage set above the equilibrium wage rate is
A) an excess quantity of labor demanded. B) an excess quantity of labor supplied. C) an increase in the quantity of labor demanded. D) a decrease in quantity of labor supplied.
Your company has recently requested that you travel to Dhaka, Bangladesh, to work on negotiations for a new factory to be located in one of the port cities. Your travel agent provides a list of several hundred local hotels and a Sheraton. In this case, the Sheraton brand-name is likely to be used as a signal of
a. perceived differences that are not likely to exist among your various options. b. quality when quality cannot be easily judged. c. inefficiency in markets characterized by recognizable brand names. d. the quality of general lodging accommodations in Dhaka.