The monopolistically competitive seller maximizes profit by producing at the point where:
A. total revenue is at a maximum.
B. average costs are at a minimum.
C. marginal revenue equals marginal cost.
D. price equals marginal revenue.
Answer: C
You might also like to view...
Martha's Cleaning Services is a perfectly competitive firm that currently cleans 30 offices a week and charges $20 per office, which is the going market price. Martha's marginal cost is $15
What should Martha do to increase her economic profit? Clean more offices? Raise her price? Explain your answer.
When members of a group enjoy different opportunities that cannot be attributed to differences in ability,
a. discrimination is said to occur b. comparable worth laws are ineffective c. licensing agreements must be in effect d. all wages in the market will be the same e. the demand for labor will increase
When the monopolist decides to supply a given amount to the market, it will:
A. set the price lower than the demand curve to create a perceived shortage. B. set the price equal to marginal cost. C. only sell that amount if it charges what the demanders are willing to pay for that amount. D. set the price higher than what demanders are willing to pay for that amount.
A free market economy is one in which ________.
A) the government or other centralized group determines what to produce B) individuals determine what to produce with some level of government involvement C) a tightly knit social network barters and trades for goods at a market D) individuals and private firms make decisions based on consumer needs and wants E) privately owned, profit-seeking enterprises are converted to government-owned production and services