A profit-maximizing monopolist will continue expanding output as long as
a. marginal revenue exceeds marginal cost.
b. marginal revenue is positive.
c. the cost of producing an additional unit exceeds the marginal revenue derived from the unit.
d. economic profit is more than zero.
A
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The "big tradeoff" refers to
A) producing capital goods instead of consumable goods. B) marginal benefit versus marginal cost. C) efficiency and fairness. D) taking an economics course instead of some other course. E) using market prices rather than a command system to allocate resources.
Which of these questions does aggregate demand help us answer?
I. What determines the total amount of our output that individuals, firms, governments and foreigners want to buy? II. What is the economy's long-run real Gross Domestic Product (GDP)? III. What determines the economy's equilibrium price level and the rate of inflation? A) I only B) I and II C) II and III D) I and III
Government purchases include all of the following except:
A. the purchase of new military hardware by the U.S. Army. B. the construction of a new court house built by a county government. C. Social Security benefits paid by the federal government. D. the salary paid to an elementary school teacher employed by a local public school district.
Economics is best defined as the study of
A. how consumers make purchasing decisions. B. inflation, unemployment, and economic growth. C. financial decision making. D. choices made by people faced with scarcity.