To maximize net revenue, a price searcher should
A) set total revenue equal to total cost.
B) set marginal revenue equal to marginal cost.
C) set net revenue equal to zero.
D) reduce output if marginal costs are increasing.
B
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Price discrimination by a monopolist is less effective if the
A) good can be resold. B) good has no substitutes. C) monopolist can identify buyers by willingness to pay. D) good cannot be resold.
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 ? 5,000P + 25MQs = 240,000 + 5,000P ? 2,000PIwhere P is price, M is income, and PI is the price of a key input. The forecasts for the next year are 
= $15,000 and 
I = $20. Average variable cost is estimated to beAVC = 14 ? 0.008Q + 0.000002Q2Total fixed cost will be $6,000 next year. Suppose that income next year is forecasted to be $10,000 instead. What will the firm's profit (loss) be?
A. zero B. -$6,000 C. -$2,856 D. $2,500 E. -$3,550