Optimal price regulation sets price equal to
A) marginal cost.
B) average variable cost.
C) average cost.
D) minimum average cost.
A
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A firm in monopolistic competition is similar to a firm in perfect competition because they both
A) can earn only zero economic profit in the long run. B) can earn only zero economic profit in the short run. C) maximize their profits by producing where P = MR = MC. D) Both answers A and C are correct. E) Both answers B and C are correct.
A normal good is defined as a good for which the demand curve
A) shifts leftward as income increases. B) shifts rightward as income increases. C) slopes downward to the right. D) is perfectly price elastic.
What does the deadweight loss from monopoly measure?
What will be an ideal response?
Suppose that Megabucks Corporation is earning an economic profit of $4,000 through the sale of a product. If the price of the product is $6 per unit and its ATC is $4 per unit, Megabucks must be producing 8,000 units
a. True b. False Indicate whether the statement is true or false