1. Which of the following is true about the output level wheremarginal revenue equals marginal cost? Group...
Question:
1.
Which of the following is true about the output level wheremarginal revenue equals marginal cost?
Group of answer choices
The firm is maximizing profit.
Economic profits are equal to zero.
The firm should reduce its output.
The firm should increase its output.
2.
The price charged by a profit-maximizing monopolist occurs
Group of answer choices
At the minimum of the long-run average total cost curve.
Where P = MR = MC.
At a price on the demand curve above the intersection where MR =MC.
At a price on the long-run average total cost curve below thepoint where MR = MC.
3.
Which of the following is likely to occur if a monopoly suddenlyloses its ability to deny potential competitors entry into themarket?
Group of answer choices
Profits for the market will increase.
The industry demand curve for the product will shift.
The total market quantity of output produced will fall.
The market price of the product will fall.
4.
Which of the following is the same for monopoly and competitionunder the same cost and demand conditions?
Group of answer choices
The amount of output that is produced.
The goal of maximizing profits.
Economic profits.
Efficiency of production at the profit-maximizing output.
5.
A monopolist will find that its marginal revenue curve
Group of answer choices
Lies below its demand curve and is steeper than its demandcurve.
Is the same as its demand curve.
Lies above its demand curve and is flatter than its demandcurve.
Lies below its demand curve and has the same slope as its demandcurve.
Expert Answer:
Question 1 Which of the following is true about the output level where marginal revenue equals marginal cost Profit maximization is achieved where mar... View the full answer
