Figure 8.12 shows a demand and costs of an unregulated monopoly. At the output level of 22,000 units:
A. the firm's marginal revenue is smaller than its marginal cost.
B. the firm is earning a zero economic profit.
C. the firm is producing more than its profit-maximizing level of output.
D. All of these are correct.
Answer: D
You might also like to view...
Blueland is a small island country which specializes in the production of yachts. It has a Cobb-Douglas aggregate production function
i) How will the production of yachts get affected if the technology used for production in Blueland improves? ii) How will Blueland's output get affected if both efficiency units of labor and capital stock increase by 12.5% but the level of technology remains unchanged?
The official settlements account contains data on
A) trade complaints that are officially settled. B) capital imports and exports. C) official reserves. D) officials' expenses. E) official governmental complaints between countries.
According to the table above, would there be trade flows in both directions if the exchange rate were $1 = 1 peso?
What will be an ideal response?
Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $10. What does total revenue equal when quantity equals 4?
A) $4 B) $6 C) $36 D) $40