question archive A monopolist maximizes profit by: O a
A monopolist maximizes profit by: O a
Subject:EconomicsPrice: Bought3
A monopolist maximizes profit by: O a. charging a price where marginal revenue equals demand. 36. 37. O b. producing an output level where price equals marginal cost. O c. charging a price along the demand curve at the quantity where marginal revenue equals marginal cost. 38. O d. producing an output level where average total cost equals marginal cost. 35. o 36. If a firm in a monopolistically competitive market successfully uses advertising to decrease elasticity of demand for its product: O a. the firm will be able to increase its markup over marginal cost. 37. O b. the firm will eventually have to lower price to remain competitive. 38. O c. it will increase the welfare of society. 39. d. it will reduce average total cost. 37. o Imperfect competition occurs when: O a. There are no close substitutes 38. O b. Firms can differentiate their products 39. O c. Firms have some influence over the price they can charge 40. O d. All of the answers are true.
