What is true for both a monopolist and a perfect competitor?
A. Both maximize profits by producing where MR = MC.
B. Both have prices that are greater than marginal revenue
C. Both minimize average total cost.
D. Both face downward-sloping demand curve.
Answer: A
You might also like to view...
If the cross price elasticity of demand between goods A and B was equal to 0.5, those goods are substitutes
a. True b. False Indicate whether the statement is true or false
Define net capital outflow
In this graph of a firm’s supply and demand for labor, at what point are profits of labor maximized?
a. before MRP reaches W*
b before q* reaches W*
c. when there are q* workers
d. when quantity is highest
The following table shows the total utility and marginal utility derived from the consumption of scones. The first column of the table represents the number of scones a consumer consumes in a day. The second column of the table presents the total utility derived from that consumption, and the third column shows the marginal utility of each additional scones. The marginal utility of the second scone is _____ units. Table 6.3 Scones Total utility Marginal utility 1 10 - 2 18 - 3. 24 6 4 28 - 5 30 2
a. ?9 b. ?8 c. ?6 d. ?19 e. ?12