A monopolist will not be able to receive a positive economic profit at any price-output combination at which
A. marginal cost is less than average variable cost when the monopolist has equated marginal revenue and marginal cost.
B. the average total cost curve is everywhere above the demand curve.
C. marginal cost is less than average total cost when the monopolist has equated marginal revenue and marginal cost.
D. marginal revenue falls at a faster rate than marginal cost increases.
Answer: B
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Janae was fired from her job with Microsoft in the 2008-09 recession because Microsoft's sales dipped. Janae's unemployment would be best classified as
A) natural unemployment. B) cyclical unemployment. C) structural unemployment. D) sales-related unemployment. E) frictional unemployment.
Expenditure switching refers to
A) a switching back and forth between investment and consumption expenditures. B) a switching back and forth between domestic and foreign goods in response to changes in the exchange rate. C) a switching back and forth between domestic and foreign goods in response to changes in the interest rate. D) a switching of back and forth in the current account from a deficit to a surplus and vice versa.
A measure of the responsiveness of the demand for one good to the percentage change in the price of another good is
A) price elasticity of demand. B) price elasticity of supply. C) cross price elasticity of demand. D) income elasticity.
Suppose it was discovered that the consistent consumption of chocolate raised IQ by ten points. As a result,
A. both equilibrium price and quantity for chocolate will rise. B. both equilibrium price and quantity for chocolate will fall. C. equilibrium price will rise and equilibrium quantity will fall for chocolate. D. equilibrium price will fall and equilibrium quantity will rise for chocolate.