Which of the following statements best describes the price, output, and profit conditions of monopoly?
a. Price will equal marginal cost at the profit-maximizing level of output and profits will be positive in the long-run.
b. Price will always equal average variable cost in the short-run and either profits or losses may result in the long run.
c. All of the answers are correct.
d. In the long-run, positive economic profit will be earned.
d
You might also like to view...
The Fed's purchase of U.S. government securities constitutes a(n):
a. contractionary policy because it lowers the amount of total reserves in the banking system. b. contractionary policy because it lowers the amount of excess reserves in the banking system. c. expansionary policy because it raises the amount of total reserves in the banking system. d. expansionary policy because it lowers the amount of total reserves in the banking system. e. expansionary policy because it raises the amount of required reserves in the banking system.
The figure below shows the market for computers in a small importing country. Dd and Sd are the domestic demand and supply curves of computers, respectively.
The imposition of a tariff on computers caused the surplus of the domestic producers to ________ by
A. rise; $44 million. B. fall; $48 million. C. rise; $20 million. D. rise; $800,000.