To maximize profit, a monopolistically competitive firm will produce where
A. marginal revenue equals price.
B. marginal revenue equals marginal cost.
C. price equals average total cost.
D. price equals marginal cost.
Answer: B
You might also like to view...
Which one of the following twentieth-century nations eliminated the problem of scarcity?
A) Socialist Cuba B) Socialist China C) Fascist Italy D) The United States of America E) None of the above.
Ecological balance is the goal that assumes the global economy can achieve balanced economic conditions ___________________ .
A. Only if pollution is kept at zero B. Only if inflation is maximized C. Only if unemployment is minimized D. While maintaining a sustainable, living planet
We can say that a contract is able to prevent moral hazard when
A) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-averse people. B) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-loving people. C) it shifts risk to risk-loving people. D) it eliminates production inefficiencies due to moral hazard and shifts risk to risk-averse people.
Dominant firms tend to lag in innovation because
A) of the sunk cost effect. B) entrepreneurs are found in smaller firms. C) they are usually focused on market share. D) all of these choices.