The fact that a monopoly has to take the shapes of marginal cost AND marginal revenue into account when making decisions is reflected in the fact that
A) monopolies don't have a supply curve.
B) monopolies don't have a demand curve.
C) monopolies have the same supply curve as perfectly competitive firms.
D) monopolies maximize profit.
A
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Firms that continue to produce when sales are temporarily low in an effort to avoid costly fluctuations in production are engaging in ________
A) second degree price discrimination B) stock out avoidance C) work in progress D) production smoothing
The results of majority voting sometimes, but not always, agree with the results of benefit-cost analysis
a. True b. False Indicate whether the statement is true or false
Double taxation of corporate earnings means
a. for individuals who get dividends on personal income, tax rates are twice as high as for wage earners. b. stockholders pay personal income taxes and corporation taxes on profits. c. stockholders don't get the plowback but still pay taxes on it. d. the corporation tax raises stock prices so individuals also pay a capital gains tax in addition to a tax on dividends.
The oligopoly price will be greater than marginal cost but less than the monopoly price when
a. the oligopolists collude by jointly choosing a quantity to produce and maintaining their agreement. b. the oligopolists collude by jointly choosing a price to charge and maintaining their agreement. c. each oligopolist individually chooses a quantity to produce to maximize profit. d. each oligopolist's objective is minimization of average total cost, rather than maximization of profit.