Figure 11-3
In Figure 11-3, which of the following is true, whether or not the monopolist is maximizing profits?
a.
MR < P
b.
MC = P
c.
MC < AC
d.
MR = P
a
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When money is used to express the value of goods and services, it is functioning as a
A) medium of exchange. B) store of value. C) store of purchasing power. D) unit of account.
In the base year, the relationship between nominal and real GDP is
a. uncertain. b. one of equality. c. real GDP is higher. d. nominal GDP is higher.
Autonomous consumption is the level of consumption that is
A) consistent with the average standard of living. B) observed at the poverty line. C) independent of real income. D) available to someone earning the minimum wage.
Tax revenues increase in direct proportion to increases in the size of the tax
a. True b. False Indicate whether the statement is true or false