A profit-maximizing monopolist will produce the level of output where
A. marginal revenue is zero.
B. price equals marginal cost.
C. marginal revenue equals marginal cost.
D. marginal cost is minimized.
Answer: C
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The World Trade Organization is a successor organization to the
A) United Nations. B) World Bank. C) International Court of Justice. D) GATT.
All the below choices are examples of promoting a firm's product, except
a. Advertising b. Pricing c. Discount coupons d. End-of-aisle displays
Due to the nature of the patent laws on pharmaceuticals, the market for such drugs
a. always remains a competitive market. b. always remains a monopolistic market. c. switches from competitive to monopolistic once the firm's patent runs out. d. switches from monopolistic to competitive once the firm's patent runs out.
Monetarists argue that the money supply should
A. grow at a rate greater than the average growth of real output. B. grow at a rate slower than the average growth of real output. C. grow at a rate equal to the average growth of real output. D. be held constant over the business cycle.