A. marginal revenue equals marginal cost
B. marginal revenue equals price
C. marginal cost equals price
D. marginal cost equals demand
E. none of these answers
Related Mcqs:
- Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?
A. maximized its total revenue
B. set price equal to its average cost
C. equated marginal revenue and marginal cost
D. maximized the difference between marginal revenue and marginal cost. - A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?
A. £35
B. £15
C. £30
D. £60 - When a monopolist produces an additional unit, the marginal revenue generated by that unit must be ?
A. below the price because the price effect outweighs the output effect
B. above the price because the output effect outweighs the price effect
C. above the price because the price effect outweighs the output effect
D. below the price because the output effect outweighs the price effect - Thomas is a monopolist in the production of your textbook because ?
A. Thomson has a legally protected exclusive right to produce this textbook
B. Thomson owns a key resource in the production of textbooks.
C. Thomson is a natural monopoly,
D. Thomson is a very large company - The monopolist’s supply curve ?
A. does not exist
B. is the marginal cost curve above average variable cost?
C. is the marginal cost curve above average total cost
D. is the upward-sloping portion of the average total cost curve
E. The upward-sloping portion of the average variable cost - This monopolist should produce ?
A. 1
B. 2
C. 3
D. 4
E. 5 - Compared to the case of perfect competition, a monopolist is more likely to ?
A. charge a higher price
B. produce a lower quantity of the product
C. make a greater amount of economic profit
D. all of the above - Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?
A. Should produce more units
B. has maximized profits.
C. is in a Nash equilibrium
D. Should produce fewer units
E. should exit the industry. - In aukarky, when a community maximizes its standard of living, its production and consumption point is ?
A. below the production possibility frontier
B. On the production possibility frontier
C. above the production possibility frontier
D. can’t tell without more information - In autarky, when a community maximizes its standard of living its production point is ?
A. below the production possibility frontier
B. on the production possibility frontier
C. above the production possibility frontier
D. can’t tell without more information
