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.
Answer: A
You might also like to view...
The quantity theory of money and prices assumes
A) the price level is increasing at a constant rate. B) the price level is constant. C) real output is constant. D) velocity is constant.
The nominal interest rate in Autarkia has risen sharply after a change in a government policy. How will this affect the economy if the wages in the country are downwardly rigid?
What will be an ideal response?
Unlike firms that sell stock in financial markets, which are known as ________ firms, companies which do not sell stock in financial markets are known as ________ firms
A) public; private B) corporate; proprietary C) open; closed D) stock market; bond market
Suppose that goods A and B are close substitutes. If the price of good A falls, then we would expect an:
A. Increase in the demand for A and an increase in the quantity of B demanded B. Increase in the demand for A and a decrease in the quantity of B demanded C. Increase in the quantity of A demanded and a decrease in the demand for B D. Increase in the demand for good A as well as for good B