A profit maximizing monopolist faces the following information: P = $4, MR = $2, MC = $1.50. The firm should
A. shut down.
B. stay at its current level of output.
C. decrease output.
D. increase output.
Answer: D
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The above table gives some of Tammy's total and marginal utilities from comedy videos. Which of the following statements is TRUE?
A) Tammy's marginal utility from the third comedy video is equal to 580/3. B) Tammy's total utility from five comedy videos is 800. C) Tammy's marginal utility from the first comedy video is less than her marginal utility from the third comedy video. D) None of the above answers are correct.
Refer to Table 2-19. What is Wilma's opportunity cost of making a bench?
A) 3 statues B) 1/2 of a bench C) 1.3 statues D) 1/3 of a statue
When a consumer allocates her limited budgetary resources to maximize her well-being, ____ is achieved
a. the elimination of scarcity b. market equilibrium c. consumer equilibrium d. the maximization of marginal utility
The demand for loanable funds comes from:
A. investment. B. savings. C. the government printing money. D. households spending on nondurable goods.