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.
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Marginal cost is equal to
A) the total cost of a firm's production. B) total cost minus fixed cost. C) a cost that is not related to the quantity produced. D) the change in total cost that results from a one-unit increase in output. E) the change in fixed cost that results from a one-unit increase in output.
The demand curve for microwave popcorn is linear. Which of the following definitely makes the demand for microwave popcorn more inelastic?
A) a decrease in the price of microwave popcorn B) an increase in the price of microwave popcorn C) an increase in income D) a decrease in income
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:
a. 0. b. 4. c. 12. d. 20.
In the last few decades, the United States has generally experienced trade deficits.
a. true b. false