The profit-maximizing rule for a firm in a monopolistic competitive market is to select the quantity at which...
Answer : Marginal revenue is equal to marginal cost.
You might also like to view...
Refer to the figure above. Which of the following is likely to happen if a price control above the equilibrium price is imposed?
A) Quantity demanded will exceed quantity supplied. B) Quantity supplied will exceed quantity demanded. C) Consumer surplus will increase. D) Producer surplus will decrease.
Cheap talk
A) is never credible. B) is illegal. C) generally affects the game's payoffs. D) can be credible when both firms have an incentive to be truthful.
Lee, J Brand, Joe's Jeans, Paper Denim & Cloth, Levi's, Wrangler, and many others are all producers of jeans. J Brand jeans sell for about $200 a pair. What would happen if J Brand priced their jeans at $220 per pair?
A) They would sell fewer jeans because demand is elastic. B) They would not sell any jeans. C) They would sell more jeans. D) They would sell fewer jeans because demand is perfectly elastic.
Suppose a consumer buy books and DVDs. The price of a book is $10, the price of a DVD is $20 and the consumer's income is $400. If books are measured on the vertical axis and DVDs are measured on the horizontal axis, then the budget line intersects the vertical axis at:
A. 40. B. 20. C. 10. D. 400.