The profit-maximizing output level for a monopolist occurs where marginal revenue equals marginal cost.
Answer the following statement true (T) or false (F)
True
All firms, monopolies or otherwise, maximize profits by equating marginal cost and marginal revenue.
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The textile industry is composed of a large number of small firms. In recent years, these firms have suffered economic losses, and many sellers have left the industry. Economic theory suggests that these conditions will
a. shift the demand curve outward so that price will rise to the level of production cost. b. cause the remaining firms to collude so that they can produce more efficiently. c. cause the market supply to decline and the price of textiles to rise. d. cause firms in the textile industry to suffer long-run economic losses.
If aggregate expenditures exceed the amount actually produced, then which of the following is true?
a. There will be unplanned inventory reductions. b. There will be unplanned inventory buildups. c. There will be zero unplanned inventory. d. There will be no change in unplanned inventory.
Lower deductibles for employer-provided health care will tend to shift the ________ curve for medical services to the ________
A) demand; left B) demand; right C) supply; left D) supply; right
The long-run supply curve in a constant-cost, perfectly competitive industry is
A) perfectly inelastic. B) upward sloping. C) downward sloping. D) perfectly elastic.