The monopolist will maximize profits at the output level for which:
A. marginal revenue equals marginal cost.
B. price equals marginal cost.
C. price equals average total cost.
D. marginal revenue equals average total cost.
Answer: A
You might also like to view...
When economists say an individual possesses a "positive rate of time preference," they mean that she prefers to
a. save rather than consume. b. invest now rather than in the future. c. consume goods and services in the future rather than now. d. consume goods and services now rather than in the future.
Owen and Simon both like playing with balls and cars. Suppose B represents the number of balls, and C represents the number of cars. If Owen's utility function can be given by U(B, C) = 10B + 5C, and Simon's utility function can be given by U(B, C) = 6B + 6C, which of the following trades would benefit Simon but not Owen?
A. Owen gives Simon 3 cars in exchange for 2 balls B. Owen gives Simon 2 cars in exchange for 3 balls C. Owen gives Simon 3 balls in exchange for 2 cars D. Owen gives Simon 2 balls in exchange for 3 cars
A supply schedule illustrates the quantity supplied at
A. market equilibrium. B. different selling prices. C. various demand levels. D. a single selling price.
If the marginal revenue product of the last worker hired exceeds the marginal factor cost of the worker, the firm would be better served if it
A) hires additional workers. B) maintains its current level of workers already hired. C) lays off the last worker hired. D) None of the above is a good option for a profit-seeking firm.