Suppose a monopolist faces the demand curve shown below. 
The monopolist maximizes its profits by:
A. producing 35 units, since this is where total revenue is maximized.
B. charging $70 for each unit.
C. producing the level of output at which marginal revenue equals marginal cost.
D. producing the level of output at which marginal revenue minus marginal cost is greatest.
Answer: C
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Draw in a new demand curve, D1, on the graph, showing a decrease in demand What happens to price and quantity?
Price leadership
A. Results in inflexible prices. B. Results in predatory pricing. C. Accounts for kinked oligopoly behavior. D. Helps achieve monopoly profit for the market.
If a person has a comparative advantage in some activity, she must have an absolute advantage in that activity as well.
Answer the following statement true (T) or false (F)
Explain the difference between a nominal value and a real value
What will be an ideal response?