Which marginal revenue is less than marginal cost

Assignment Help Business Economics

Reference no: EM131246040

1. If a monopolist produces to a point at which marginal revenue is less than marginal cost then

a. profits are being maximized.

b. profits will always be negative.

c. the incremental cost of producing the last unit exceeds the incremental revenue.

d. the incremental cost of producing the last unit is less than the incremental revenue.

2. The conclusion that a monopoly results in lower output and higher prices than perfect competition relies on the assumption that

a. the demand curve for a monopoly is horizontal.

b. consumers are ignorant of the effects of monopoly.

c. the costs of production are the same whether the industry is perfectly competitive or a monopoly.

d. elasticity of demand varies along the market demand curve.

Reference no: EM131246040

Questions Cloud

Spend time doing some of their favorite activities : Trade/Opportunity Cost: Pat and Kris are roommates. Outside of the time they spend studying, they spend time doing some of their favorite activities: making pizza and brewing root beer. Pat takes 4 hours to brew a gallon of root beer and 2 hours to m..

Find the equilibrium rental rate : Consider an economy with a representative consumer like the one described above, and a representative firm like The production function of the firm is given by zF (K, N) where: F (K, N) = KαN β and α + β

Distribution with expected value and standard deviation : Based on a random sample of 20 values from a distribution with expected value (mu) and standard deviation (sigma), it was calculated that (X(hat) = 8) and (S=4). Provide a 95% confidence interval for the population expected value.

Which marginal revenue is less than marginal cost : If a monopolist produces to a point at which marginal revenue is less than marginal cost then. The conclusion that a monopoly results in lower output and higher prices than perfect competition relies on the assumption that.

True statement about monopoly and perfect competition : Which of the following is a TRUE statement about monopoly and perfect competition? Compared to perfectly competitive firms, the demand curve for a monopolist will be.

Producing the quantity at which price equals marginal cost : If a monopolist is producing the quantity at which price equals marginal cost, it should. Three friends are considering whether to attend a match or staying at their respective homes. Each of the three would prefers to attend the match if the other t..

Which models produces the lowest and highest total profits : Price outcomes of the 4 oligopoly models (Sweezy, Cournot, Stackelberg, and Bertrand) differ substantially. Which models produces the lowest and highest total profits (all firms combined)? What are the predicted prices? Provide aviation industry exa..

Monopolies that price discriminate do so because : Other things being equal, a price-discriminating firm will charge less to the customers who. Monopolies that price discriminate do so because.

User Account

All Pages