If a firm has large start-up costs and nearly zero marginal costs
A) the firm can profit by focusing on total cost.
B) the firm cannot profit competing on marginal cost.
C) the firm can make money by simply charging a price.
D) the firm can profit competing on marginal cost.
B
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At a certain level of production, the marginal revenue and marginal cost of a monopolist are $8 and $6, respectively. Which of the following statements is true in this context?
A) The monopolist should expand production. B) The monopolist should contract production. C) The profits of the monopolist are maximized. D) The profits of the monopolist are minimized.
Which of the following is a measure of standard of living that is not included in GDP?
a. recreation and travel b. literacy level c. medical expenses d. college tuition
The Fed typically increases the money supply by
a. selling government bonds b. buying government loans c. selling government loans d. printing more currency e. buying government bonds
The short-run aggregate supply curve slopes
a. downward because firms can sell more, and hence, will produce more when prices are lower b. downward because firms find it costs less to purchase labor and other inputs when price are lower, and hence they produce more c. upwards because when the price level rises, output prices rise relative to input prices (costs), raising profit margins and increasing production and sales d. upward because firms find it cots more to purchase labor and other inputs when prices are higher, and hence they must produce and sell more in order to make a profit