Figure 11-3
Using the graph in Figure 11-3, the profit-maximizing monopolist will charge a price
a.
of more than $3.
b.
of $3.
c.
between $2 and $3.
d.
of $2.
a
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Excess capacity occurs in long-run equilibrium under monopolistic competition so that: a. price is less than marginal cost
b. price exceeds minimum average cost. c. marginal revenue exceeds price. d. all of the above occur.
Due to lowering its prices to compete with its rivals, increased competition from Airbus, and cuts to military spending, Boeing announced it would ________ the number of persons it employed in 2017 and this would ________ the total number of persons
unemployed in the economy. A) decrease; increase B) decrease; decrease C) increase; decrease D) increase; increase
If a firm’s fixed cost (overhead) increases, what happens to its profit-maximizing price and output?
What will be an ideal response?
United States Postal Service has successfully leveraged its monopoly power through
a. online postage purchases b. delivery of Netflix DVDs c. an online bill-paying service d. a secure online document transmission service e. increasing third-class mail rates