At the profit-maximizing level of production of a monopolist, ________
A) marginal revenue equals marginal cost
B) marginal revenue exceeds marginal cost
C) marginal revenue is less than marginal cost
D) both marginal revenue and marginal cost are negative
A
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Explain the shapes of the demand curve for reserves and the supply curve of reserves
What will be an ideal response?
The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive.
Moe's short run supply curve is:
A. curve A above curve C. B. curve C to the right of curve A. C. curve B to the right of curve A. D. curve A above curve B.
To answer the question, refer to the following figure, showing the marginal revenue product (MRP) and the average revenue product (ARP) curves of a perfectly competitive firm hiring a single variable input, labor.
If the wage is $20, how many workers will the firm hire?
A. 200 B. 175 C. zero D. 225
Suppose the capital stock increases by 10% and the number of employed workers increases by 5%. Given this information, explain what will happen to output and to output per worker
What will be an ideal response?