In terms of pricing, which of the following is not true for a monopolist?
A.) In the long-run economic profit is impossible.
B.) Marginal revenue is always less then the price charged.
C.) If marginal revenue is greater then marginal cost increasing output will increase profits (decrease loss).
D.) Maximum profit (minimum loss) occurs where marginal revenue equals marginal cost.
A.) In the long-run economic profit is impossible.
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National income accounting fills in the dollar values in the circular flow of income
a. True b. False Indicate whether the statement is true or false
Identify the best reason for regulating a natural monopoly
a. A natural monopoly can serve the entire market at a lower average cost than if two or more smaller firms split the market and compete against each other. Thus consumers can benefit from the existence of monopoly, and regulators must protect consumers by regulating the monopoly's price. b. A natural monopoly is a high-cost producer that creates significant employment opportunities in an economy. Thus regulators must protect them from competition. c. A natural monopoly is a large firm whose production depends largely on the natural resource endowment in a country. Regulators must control the prices of their products to help them maintain the high cost of sustainable resource management. d. A natural monopoly is a large firm that creates negative production externalities in an economy. Thus regulators impose lumpsum taxes on their produce and redistribute the proceeds to correct these negative externalities.
If you were going to evaluate the how much money you would need to pay on a loan, which Excel function would help you calculate it?
A. PMT B. Profit C. Sum D. Invest
The above diagram shows the short-run average total cost curves for five different plant sizes of a firm. In the long run the firm should produce output 0x with a plant of size:
A. #3. B. #2. C. #4. D. #1.