If a monopolistic competitor is maximizing profit, it is producing at a point where marginal cost
A. Equals average total cost.
B. Equals price.
C. Is less than price.
D. Is greater than price.
Answer: C
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If firms in a monopolistically competitive industry are operating with economic losses, over time we would see
A) firms alter their advertising rates until they made at least normal profits. B) some firms exiting the industry, causing the market supply curve to shift to the left, raising price. C) some firms exiting the industry, causing the demand curves of the remaining firms to shift to the right. D) the firms working together to increase price and everyone's profitability.
In theory, increased government tax rates could reduce tax revenue
Indicate whether the statement is true or false
The cost to a member bank of borrowing from the Federal Reserve is called the:
a. reserve requirement. b. discount rate. c. yield on government bonds. d. price of securities in the open market.
One trend in labor markets is:
A. decreasing wage inequality in the United States. B. a decrease in average real wages in the United States and other industrial countries. C. a slowdown in real wage growth in the United States since 1973. D. weak rates of job creation in the United States since 1980.