For a monopolist, at the profit-maximizing level of output:
A. marginal revenue is greater than average revenue.
B. price is greater than marginal revenue.
C. price is equal to marginal revenue.
D. average revenue is greater than price.
Answer: B
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Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991 . However, during these same years South Korea had a 6 percent growth rate of average annual income per person, while the United States had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different?
Which of the following is NOT a characteristic of a perfectly competitive market?
A. a large number of firms in a market B. selling a standardized product C. substantial barriers to entry D. an individual firm having no control over price