Consider the following cost information for a monopolist: its MR = $15, its MC = $23, and it is producing 9 units of output. Which of the following statements is correct?
a. The monopolist should produce and sell 9 units of output.
b. The monopolist should increase production of output.
c. We need more information to decide if the firm needs to produce.
d. The monopolist should not produce this output because MR < MC.
Ans: d. The monopolist should not produce this output because MR < MC.
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Indicate whether the statement is true or false
For a perfectly competitive firm, average revenue is: a. equal to marginal cost at all levels of output
b. equal to marginal revenue at all levels of output. c. equal to price at all levels of output. d. characterized by both (b) and (c).