For a monopoly earning positive economic profits at the profit-maximizing output level, all of the following are true EXCEPT
A. P > MR.
B. P > MC.
C. P = MR.
D. P > ATC.
Answer: C
You might also like to view...
The table below shows data for India's economy. Real GDP is measured in millions of rupees. Suppose that full employment occurs when real GDP is 27,000 million rupees
Price level Real GDP supplied in the short run Real GDP demanded a 114 23,501 35,898 b 120 25,355 32,341 c 125 27,670 27,670 d 131 30,366 18,569 e 138 33,164 15,898 The economy is experiencing ________ gap and firms will ________. A) an inflationary gap; increase production B) an inflationary gap; increase money wages paid to workers C) a recessionary gap; increase production D) a recessionary gap; decrease money wages paid to workers
Aggregate demand in an economy with no government or foreign trade is
A) consumer expenditure plus actual investment. B) consumer expenditure plus planned investment. C) consumer expenditure plus inventory investment. D) consumer expenditure plus fixed investment.
Under monopolistic competition ________
A) many goods and services are not standardized B) prices adjust slowly to equilibrium C) even if there is substantial competition in the market, some firms can set prices D) all of the above E) none of the above
Under the gold standard, because all currencies had values fixed in units of gold
A) exchange rates were essentially fixed. B) exchange rates were essentially floating. C) exchange rates were set to a crawling peg. D) none of the above