Which of the following is true at the profit-maximizing quantity for both a perfectly competitive firm and a monopoly?
a. Price equals marginal cost.
b. Price is greater than marginal cost.
c. Marginal revenue equals marginal cost.
d. Marginal revenue is less than marginal cost.
e. Marginal revenue is greater than average revenue.
C
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Which statement is true?
A. Productive efficiency has never been achieved. B. The U.S. economy achieved productive efficiency from mid-1997 through mid-2001. C. The U.S. economy achieved productive efficiency from 1980 to 1997. D. The U.S. economy generally attains productive efficiency.
A situation in which the price charged is greater than society's opportunity cost would lead to
A. marginal cost pricing. B. too little being produced. C. an efficient amount being produced. D. too much being produced.
You are given the following information about the economy: the nominal interest rate = 8%; the real rate of interest = 6%.The inflation premium is
A. 6%. B. 2%. C. 14%. D. 8%.
According to monetarists, an expansionary fiscal policy is a weak stabilization tool because:
A. the asset demand for money varies inversely with the rate of interest. B. government borrowing to finance a deficit will raise the interest rate and reduce private investment. C. government borrowing will reduce the supply of money in circulation and depress the GDP. D. government borrowing to finance a deficit will lower interest rates, increase money balances, and lower velocity.