A profit-maximizing monopolist produces an output level at which
a. marginal revenue is the greatest distance from marginal cost
b. price is less than marginal cost
c. the value to society of the last unit produced equals marginal cost
d. marginal revenue equals marginal cost
e. consumers wish to purchase less than what is produced because of high monopoly prices
D
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Refer to the table. The marginal cost and marginal benefit of stadium B (relative to A) are:
Answer the question on the basis of the following table that shows the total costs and total benefits facing a city of five different potential baseball stadiums of increasing size. All figures are in millions of dollars.
A. $20 million and $50 million, respectively.
B. $100 million and $200 million, respectively.
C. $30 million and $50 million, respectively.
D. $20 million and $60 million, respectively.
The Save More Tomorrow (SMarT) program found all of the following except that:
A. people want to save more than they typically do. B. participants quadrupled their savings in just a couple of years. C. if the default choice is to save a portion of income, people will save more. D. people were already saving at an optimal amount, so the program had no effect.