A non-discriminating monopolist's price equals its marginal revenue only when
A. marginal revenue is zero.
B. output is zero.
C. total revenue is a maximum.
D. the monopolist's demand schedule intersects the horizontal (quantity) axis.
Answer: B
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A college requesting applicants to submit their high school transcripts is an example of:
A. signaling. B. screening. C. statistical discrimination. D. building a reputation.
Under which one of the following market structures are sellers most likely to consider the reaction of rival sellers when they set the price of their product?
a. price-taker firms b. pure monopoly c. price searchers with low entry barriers d. oligopoly
In a fractional-reserve banking system, a bank
a. does not make loans. b. does not accept deposits. c. keeps only a fraction of its deposits in reserve. d. None of the above is correct.
Suppose an airline company has several empty seats on a flight and the full price of an air ticket is $500 while the marginal cost per passenger is $100. The flight leaves in one hour. Which of the following actions will be the best profitable way to to ensure the remaining seats are sold?
What will be an ideal response?