How does a monopoly maximize profits? What price does it charge?
What will be an ideal response?
A monopoly finds the rate of output at which marginal revenue equals marginal cost. Any other output will generate lower profits. If marginal revenue is greater than marginal cost, an extra unit generates more revenue than costs, so profits increase. If marginal cost exceeds marginal revenue, cutting output by one unit reduces costs more than revenues, so profits increase. When marginal cost equals marginal revenue, profits are maximized. The price is found by identifying the price on the demand curve associated with the profit maximizing rate of output.
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When households hold money for unplanned expenditures and emergencies, it is called
A) the speculative demand for money. B) the transactions demand for money. C) the irrational demand for money. D) the precautionary demand for money.
For Kimbra, the marginal utility of having lawn mowing service once a month is 90 utils. Having the service a second time in a month is 70 utils, and a third time is 50 utils. What is the most likely estimate in utils for having the lawn mowing service a fourth time in a month?
a. 50 b. 30 c. 10 d. 0
Refer to the information provided in Figure 10.2 below to answer the question(s) that follow. 
Figure 10.2 Refer to Figure 10.2. This firm?s marginal cost curve has shifted from MC1 to MC0. A likely explanation for this is that
A. the demand for the firm?s product increased. B. the price of a variable input increased. C. the supply of a variable input increased. D. the productivity of a variable input increased.
___ is when you are in a persuasion situation. The steps are presentation, getting your attention, but they want you to comprehend what they are saying. Next is yielding AKA liking their product. Next is something different from all other models... RETENTION (remembering info), and this model ends with behavior.
Fill in the blank(s) with the appropriate word(s).