A monopolist would not be able to make a positive profit at any price output combination when
A. the minimum point of the average total cost curve lies to the right of the minimum of the average variable cost curve.
B. the average variable cost curve is everywhere above the marginal revenue curve.
C. marginal cost is less than average total cost for one more unit of output.
D. the average total cost curve is everywhere above the demand curve.
Answer: D
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One of the defining characteristics of a perfectly competitive market is what type of product ?
Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. If Dave buys 20 magazines per week, which of the following amount of pizza is not affordable to him?
A) 10 B) 20 C) 9 D) All of the above answers are correct because none of the listed amounts of pizza are affordable.
It is inefficient to charge a positive price for a collective consumption good
a. True b. False
As output rises, marginal product eventually diminishes and
a. marginal cost increases b. average cost falls c. total cost falls d. fixed cost is increasing e. average product is negative