Many people believe that monopolies charge any price they want to without affecting sales. Instead, the output level for a profit-maximizing monopoly is determined by:
A. Marginal revenue = Demand.
B. Average total cost = Demand.
C. Marginal cost = Demand.
D. Marginal cost = Marginal revenue.
Answer: D
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When comparing the U.S. and Mexican car assembly industries, the disadvantage of higher U.S. wages is offset by
A) Mexican trade barriers. B) trade adjustment assistance in the United States. C) higher productivity in the United States. D) a lower opportunity cost in Mexico. E) "Buy American" advertising campaigns in the United States.
Federal antitrust laws in the United States are intended to
A) promote competition by prohibiting monopolies. B) increase corporate earnings. C) create new monopolies. D) create only government-owned monopolies.
As the capital stock grows and technology improves, we would expect the long-run aggregate supply curve to
A) shift right. B) shift left. C) remain the same. D) first shift right, then shift left.
In 1860, the Republican Party formed a coalition of anti-slavery voters that elected Abraham Lincoln to the presidency. Members of this coalition included all of the following groups except:
a. Northwestern farmers. b. Irish and German immigrants. c. Producers who were economically linked by the Northern Gateway. d. Large property owners in New Mexico and Utah.