To maximize profits, a monopolist produces the quantity by which of the following?
a. Marginal revenue equals average total cost.
b. Price equals marginal revenue.
c. Marginal revenue equals marginal cost.
d. Price equals marginal cost.
c. Marginal revenue equals marginal cost.
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If the demand for a product is said to be relatively inelastic, the "absolute" value of the elasticity coefficient will be
A) less than one. B) greater than one. C) equal to one. D) zero.
Crowding out refers to the government's increased demand for credit, which:
a. displaces some private sector consumption by decreasing the price level. b. displaces some private sector borrowing by decreasing the interest rate. c. displaces some private sector borrowing by increasing the interest rate. d. hires labor away from the private sector e. displaces some import purchases by the private sector.
The consumer price index is calculated by the:
A. Bureau of Labor Statistics. B. Congressional Budget Office. C. National Bureau of Economic Research. D. Social Security Office.
The production possibilities curve marks the boundary between attainable and unattainable combinations of output
a. True b. False Indicate whether the statement is true or false