In monopolistic competition, a firm’s profit-maximizing price is found by determining how much ______.

a. will be demanded at the equilibrium quantity
b. marginal cost is below or above average total cost
c. will be demanded at the highest possible price
d. marginal revenue is below or above average total cost


a. will be demanded at the equilibrium quantity

Economics

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Picture an economy that is in general equilibrium. What would happen if the natural rate of unemployment were to experience a decrease?

A) according to the Phillips curve, the ensuing negative unemployment gap would exert inflationary pressures B) according to Okun's Law, the ensuing negative unemployment gap would be consistent with a positive output gap C) according to the AD-AS framework, the LRAS curve would shift to the right and the ensuing output gap would have to be closed by subsequent rightward shifts in the AS curve to a lower equilibrium level of inflation D) all of the above E) none of the above

Economics

Social Security, like other governmental programs, alters individuals' decisions to save, consume and invest privately for the present as well as the future

Indicate whether the statement is true or false

Economics

Earnings sharing regulation helped to improve a public utility's profit seeking efficiency incentives

Indicate whether the statement is true or false

Economics

According to the graph shown, if the economy were operating in autarky and then moved to free trade, the overall impact on surplus would be a net:

This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.

A. gain of FGIJKL.
B. loss of FGIJKL.
C. gain of FGJK.
D. loss of FGJK.

Economics