Unlike perfectly competitive firms, monopolists produce where marginal revenue intersects marginal cost.
Answer the following statement true (T) or false (F)
False
Rationale: The second part of the statement is true, but the "unlike perfectly competitive firms" part is not. All firms produce where MR=MC -- it's just that for competitive firms, MR=p and thus they produce where p=MC.
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A bond is
A. a claim on the assets of a corporation such that the purchaser has an ownership right in the corporation. B. anything of value to which the firm has a legal claim. C. a means of assuring that the business firm will pay its debts or fulfill other legal obligations. D. a promise to pay for the use of someone else's money.
Monopolistically competitive sellers are price takers
a. True b. False Indicate whether the statement is true or false
Which of the following exchanges handles numerous technology companies including Intel and Microsoft?
a. NASDAQ b. NYSE c. AMEX d. None of the above handle technology stocks.
Economies of scale associated with financial intermediaries means:
A. the cost per transaction falls as a larger volume of similar transactions are handled. B. the cost per transaction decreases regardless of the number of transactions. C. the cost per transaction increases as more transactions are handled. D. the total cost of handling transactions falls as more transactions of different kinds are handled.