At its current production level, a monopolist's marginal revenue is $20 and its marginal cost is $10. Which of the following is CORRECT?
a. The monopolist should produce and sell more output.
b. The monopolist should produce and sell less output.
c. The monopolist is maximizing its profits at its current level of output.
d. More information is required to decide if the firm needs to change its production.
Answer: a. The monopolist should produce and sell more output.
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We can find the market demand for pears by:
a. adding up all the prices people are willing to pay for pears. b. multiplying the number of people times the price of pears. c. adding up the number of pears that producers are willing to sell. d. multiplying the number of pears by the price of pears. e. adding up all the individual demand curves for pears.
What do economists mean by "consumer equilibrium?"
If the government uses the budget as an economic stabilizer, the budget is most likely to be in deficit during a(n)
a. inflationary period. b. trough. c. expansion. d. peak.
Jim, who is African American, and Paul, who is Polish American, were roommates in college. When they graduated, they had the same grade point average and excellent recommendations from their professors. Their first jobs were in the same industry at about the same salary. However, 20 years later, Paul is making significantly more money than Jim is. Based on common patterns in the United States, what is a likely reason for the difference?
a. Jim has experienced continuing discrimination over time. b. Paul has experienced reverse discrimination over time. c. Paul has more experience than Jim. d. Jim has fewer qualifications than Paul.