A monopolistically competitive firm ________ where marginal revenue equals marginal cost.
A. minimizes average total cost
B. minimizes average variable cost
C. maximizes revenues
D. maximizes profits
Answer: D
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Under a marginal cost pricing rule, a natural monopoly
A) makes a reasonable profit. B) makes an economic profit. C) earns accounting profits, but breaks even in economic terms. D) incurs an economic loss. E) makes a normal profit, but it cannot be determined whether or not it makes an accounting profit.
The Federal Reserve System
A) regulates the nation's financial institutions. B) conducts the nation's monetary policy. C) Both answers A and B are correct. D) Neither answer A nor B is correct.
The table below shows data for Japan
2008 2009 M1 growth rate 0.7 0.9 Inflation rate 0.4 -0.3 Assuming the rate of velocity change is constant, real GDP A) grew by 0.3 percent in 2008. B) grew by -1.2 percent in 2009. C) grew by 1.1 percent in 2008. D) grew by 0.9 percent in 2009.
A form of implicit collusion where one firm in an oligopoly announces a price change which is matched by other firms in the same industry is
A) "tit-for-tat" pricing. B) "follow the leader" pricing. C) retaliation pricing. D) price leadership.