A monopolist finds the price-output combination that maximizes its profits by
A) equating total revenue and total cost.
B) equating marginal revenue and marginal cost.
C) finding the combination for which the difference between marginal revenue and marginal cost is the greatest.
D) equating price and marginal cost.
Answer: B
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Refer to Table 11-8. Elegant Settings experiences
A) increasing returns beyond an output level of 400. B) economies of scale up to an output level of 400. C) diminishing returns up to an output level of 400. D) economies of scale at an output of 300 or less and diseconomies of scale at an output level above 400.
Suppose that Melinda goes to the movies 6 times per month when the price is $14 and 4 times per month when the price is $20. What is the price elasticity of Melinda’s demand curve?
a. 0.02 b. 0.2 c. 1.33 d. 10.0
Throughout the period from 1996 to 2010, U.S. Real GDP growth has been
a. constant. b. declining. c. steadily increasing. d. fluctuating.
The primary purpose of measuring the overall level of prices in the economy is to
a. allow for the measurement of GDP. b. allow consumers to know what kinds of prices to expect in the future. c. allow for the comparison of dollar figures from different points in time. d. allow for the comparison of dollar figures from the same point in time.