The price charged by a monopoly firm is the market price (demand curve) at which:

a. MR = MC, and usually P > MR and P > MC.
b. the firm is just breaking even.
c. the firm makes a normal profit.
d. the firm can export its products.


Ans: a. MR = MC, and usually P > MR and P > MC.

Economics

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The demand curve for microwave popcorn is linear. Which of the following definitely makes the demand for microwave popcorn more inelastic?

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Assume the total utilities corresponding to the first four units of a product consumed are 8, 12, 14, and 15, respectively. The marginal utility of the second unit consumed is:

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