The typical marginal cost curve faced by monopolists is U-shaped, whereas the average cost curve is upward sloping
a. True
b. False
Indicate whether the statement is true or false
False
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Allison's Auto Art is a company that applies pinstripes to vehicles. Allison's cost for a basic 1-color pinstriping job is $35, and she charges $95 for this service
For a total price of $175, Allison will apply a fancier 3-color pinstripe application to an automobile, a service that adds an additional $40 to the total cost of the package. Should Allison continue to offer the 3-color pinstripe application? A) No, her marginal benefit is less than her marginal cost. B) Yes, she still makes a profit by selling the 3-color application. C) yes, but only if she lowers the price of the 1-color application D) More information is needed for Allison to make this decision.
Which statement is true?
A. If the Metropolitan Opera had every opera star in the world under contract, it would be considered a monopoly because it had control over an essential resource in its business. B. There is no way to distinguish between the long run and the short-run if a monopoly is making a profit. C. Until the early 1960s, the National Football League had control of an essential resource, star football players, and was therefore able to maintain its monopoly status until the American Football League started drafting college stars in the early 1960s. D. All of the statements are true.
Cap rollover
What will be an ideal response?
If revenue is less than ________, profit is ________.
A. total cost; positive B. total fixed cost; positive C. total variable cost; zero D. total cost; negative