A price-taking firm and a monopolist are alike in that a. price equals marginal revenue for both.

Question:

A price-taking firm and a monopolist are alike in that

a. price equals marginal revenue for both.

b. both maximize profits by choosing an output where marginal revenue equals marginal cost, provided that price exceeds average variable cost.

c. price exceeds marginal cost at the profit-maximizing level of output for both.

d. in the long run, both earn zero economic profits.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Exploring Microeconomics

ISBN: 9781544339443

8th Edition

Authors: Robert L. Sexton

See More Books

Question Posted: May 19, 2024 08:01 AM

See More Questions

Multiple Choice Questions: 1. Monopoly is unlike perfect competition in that a. A monopolists price is greater than marginal cost. b. There are no barriers to entry into a monopoly industry. c. A...
Multiple Choice Questions: 1. If a profit-maximizing monopolist is currently charging a price on the inelastic portion of its demand curve, it should a. Raise price and decrease output. b. Lower...
The following figure shows the marginal cost curve, average total cost curve, average variable cost curve, and marginal revenue curve for a firm for different levels of output in a perfectly...
What is the capacity for each of the containers in Problems 4754? (Give answers in the U.S. system to the nearest tenth of a gallon or in metric to the nearest tenth of a liter.) Orange 25 cm Juice...
The subsurface characteristics for a highway pavement rehabilitation project in the southeastern United States are shown in a "boring log" in Figure 5.13. The highway structure consists of the...
Raye believes the previous advisers asset class specifications for equity and derivatives are inappropriate given that, for purposes of asset allocation, asset classes should be: A. diversifying. B....
Ortega Industries has a fully funded pension plan. Each year, pension expense runs in excess of $\$ 10$ million. At the present time, employees are entitled to receive pension benefits with a...
For three generations, the Dexter family has sent its children to Private University, preparing them for successful professional careers. The Edna Dexter Trust was established in the 1950s by...
Toby has opened an RRSP account by making an initial deposit of $1200. She intends to make quarterly deposits for 20 years, increasing at a constant rate of 1.5%. How much of the accumulated value...
Which of the following is true of perfect competition but not true of monopoly? a. The firms average total cost curve is U-shaped. b. Marginal revenue is equal to price. c. A profit-maximizing firm...
Monopoly is unlike perfect competition in that a. a monopolists price is greater than marginal cost. b. there are no barriers to entry into a monopoly industry. c. a monopolist earns an economic...
Twelve families have been referred to a counselor, and she has rated each of them on a cohesiveness scale. Also, she has information on family income and the number of children currently living at...
Bond Company is placing an ad in the local paper to advertise its products. The ad will run for one week at a total cost of $5,500. Bond Company has four categories of products as follows: % of floor...
Moosa Distribution Limited purchased a delivery van for R620 000 on the 1st of January 2019.The delivery van will be depreciated over 4 years on a straight line method with a nil residual value. Wear...
Identify at least three specific factors that have likely shaped your own implicit or unconscious biases. What examples of bias did you know about before reading the explanations? What examples were...
1) Explain how the different participants in the exchange market can take advantage of it. Support your argument. 20 points 2) Explain how the European Monetary Union has simplified trade in Europe....
What are the roots of the equation x^(2)-2x+2=0 in simplest a+bi form?
Determine the impedance ZL for maximum average power transfer and the value of the maximum average power absorbed by the load in the network shown in Fig P 9.22 j2 2200 V 4 2245 A Figure P 9.22
If |62x|>9, which of the following is a possible value of x? A. 2 B. 1 C. 0 D. 4 E. 7
Based on this data $diameter [1] 5.196352 4.400544 5.818483 4.845081 $average.distance [1] 2.176689 1.466293 2.320545 1.709411 $median.distance [1] 2.113188 1.414678 2.261170 1.645271 $separation [1]...
Use conditional formatting to highlight all Seminars with a cost greater than $1,000 with yellow fill with dark yellow text. Use conditional formatting to highlight all Seminars with a cost greater...
To qualify for Part D of the Medicare program, one has to be enrolled in which of the other part/parts? Part A or Part B Both Part A and Part B Part B or Part C Part C

A price-taking firm and a monopolist are alike in that a. price equals marginal revenue for both.

Question:

Step by Step Answer:

Exploring Microeconomics

Students also viewed these Business questions