The profit maximizing quantity to produce can be found at what location for a monopoly?
a. where MR=MC
b. where ATC=Profit
c. where ATC is the lowest
d. where MR is the greatest
a
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Why is it difficult to make accurate and valid comparisons of real GDP or GNP for different countries, and how do the World Bank and the IMF deal with these difficulties?
What will be an ideal response?
Land on both sides of the border of Brazil and Venezuela has long been occupied by the Yanomamo people. These “fierce people” are the last Stone Age tribe left in South America. Following discovery of gold, approximately 45,000 garimpeiros (gold miners) invaded the Yanomamo territory. The mining process pollutes the rivers and scares away game, so traditional Yanomamo sources of food are almost impossible to find now. The Yanomamo are starving. Economists call this problem
A. the cost disease. B. an externality. C. specialization. D. rent seeking.
The manager of Greene Enterprises, Inc., recently estimated its average variable cost (AVC) function to beAVC = 88 - 0.026Q + 0.000003Q2Greene Enterprises faces total fixed costs (TFC) of $300,000. If Greene Enterprises produces 6,000 units of output, what is estimated short-run marginal cost (SMC)?
A. $62.40 B. $83 C. $45.60 D. $92 E. $100
Game theory is
A. The study of decision making in situations where strategic interaction occurs between rivals. B. Practiced by perfectly competitive firms. C. The study of price-fixing and collusion. D. An explanation of how oligopolists become monopolists.