A profit maximizing monopolist always chooses to operate at the output level where
A. P = MR = MC.
B. MR = MC = AC.
C. P > MR = MC.
D. P < MC = MR.
Answer: C
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An increase in the price of input used to produce a product will lead to
A) a decrease in the demand for that product. B) a decrease in quantity supplied of that product C) a decrease in the supply of that product. D) an increase in the supply of that product.
Suppose all people have the same age-earnings profile and the percent of the population in each age category is the same. The distribution of income at any point in time will be
A) equal because all have the same profile. B) equal because incomes and wealth levels must then be the same. C) unequal because other sources of income will differ. D) unequal because incomes differ by age.
If the interest rate increases, the money demand curve
a. shifts to the right. b. shifts to the left. c. neither shifts nor changes slope. d. gets steeper. e. becomes horizontal.
Which of the following is NOT an example of ways in which microeconomic analysis can help Toyota Motor Corporation in its corporate decision making?
A.Forecasting demand for new automobiles B. Determining how many automobiles to produce in order to maximize profits C. Forecasting the effect of an oil price increase on demand for hybrid autos D. Predicting how competitors will react to the firm's pricing strategy E. Forecasting the effect of Toyota's hiring patterns on the U.S. unemployment rate