The monopolist chooses to produce:
A. at a higher quantity than the perfectly competitive firm.
B. where marginal cost equals marginal revenue.
C. at an efficient outcome.
D. at a cost that is equal to a competitive one.
Answer: B
You might also like to view...
Ignoring the Ricardo-Barro effect, what impact does the government have in the loanable funds market?
What will be an ideal response?
If we observe both an increase in the price of flour and in the number of units sold, this could be explained by: a. an increase in the demand for flour. b. a decrease in the demand for flour. c. a decrease in the supply of flour
d. an increase in the supply of flour.
Which of the following is an example of a natural monopoly?
a. Government b. The railway system c. An internet service provider d. An automobile manufacturer
Refer to the diagram above, which shows three supply curves for corn. A movement from point a to point b is caused by a change in the:
Price of corn in the market Number of corn farmers Price of resources used to produce corn Technology of corn farming