Why do perfectly competitive firms maximize their profits by producing so that the price is equal to marginal cost, but monopolists maximize their profits by setting a price that is greater than marginal cost?
What will be an ideal response?
Both types of firms maximize profits by producing so that their marginal revenue equals their marginal cost. For perfect competitors, price also equals marginal revenue, and therefore, at maximum profits, price equals marginal cost.
Economics
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The sum of the Fed's monetary liabilities and the U.S. Treasury's monetary liabilities is called
A) the money supply. B) currency in circulation. C) bank reserves. D) the monetary base.
Economics
In the pivotal Supreme Court decision Munn v Illinois (1877), the court held that only natural monopolies were subject to federal government regulation
Indicate whether the statement is true or false
Economics