A monopolist maximizes profit:
a. by charging the highest possible price on the demand curve.
b. by charging a price that equals its marginal cost.
c. by producing a level of output where the average-cost curve intersects the demand curve.
d. by producing a level of output where marginal revenue equals marginal cost.
e. by charging a price equal to its average total cost.
d
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A change in all of the following variables will change the market demand for a product except
A) the price of the product. B) tastes. C) income. D) population and demographics.
Bobby's neighbor is growing a tree that is blocking Bobby's ocean view. Bobby is considering taking his neighbor to court. To Bobby, the tree represents a(n)
a. unclear property right b. public good c. free-rider good d. positive externality e. negative externality
GDP and GNP are identical when
a. exports and imports exactly balance. b. all domestic production is by domestically owned producers and no foreign production is carried out by domestic producers. c. production by domestic producers in other countries is greater than production by foreign producers domestically. d. there are no taxes.
The reforms introduced by Congress in the 1930s led to the era now referred to as the Great:
A. Crash. B. Moderation. C. Recession. D. Depression.