The monopolist and the perfectly competitive firm both choose to maximize profits by choosing the level of output where:
A. MC equals MR and price is equal to minimum ATC.
B. the two types of firms make their profit-maximizing decision differently.
C. MC equals MR and price is equal to AR.
D. MC equals AR and price is equal to minimum ATC.
C. MC equals MR and price is equal to AR.
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It has been observed that people surveyed shortly after major air crashes estimate higher probabilities that a given flight will crash than people surveyed during intervals without any. The error in reasoning observed in this experiment results from:
a. availability heuristics. b. representative heuristics. c. population heuristics. d. selection bias.
Which of the following describes bundling?
a. Selling multiple products as one product b. Allowing customers to buy one product if they also buy another c. Regulating the number of reduced-priced products d. One firm buying the rights to sell the products of another firm
Balance of payments deficits arise whenever the exchange rate is set at an artificially high level
a. True b. False Indicate whether the statement is true or false
Generally, expenses on toothpaste are a small part of a consumer's budget, so the demand for toothpaste is more likely to be
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.