When a monopolist is producing at the profit-maximizing output level, the value to consumers of one additional unit of output will
a. exceed the monopolist's marginal cost.
b. equal the monopolist's marginal cost.
c. be less than the monopolist's marginal cost.
d. exceed the price of the additional unit.
A
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How do advocates of discretionary stabilization policy view frequent changes in spending and tax policy?
A. The changes make the economy more difficult to forecast. B. The changes make life more difficult and hectic for Congress and the Fed. C. The changes smooth out the business cycle, making planning easier. D. The changes cause more instability in the economy and make planning more difficult.
If there is only one domestic automobile manufacturing firm in a small country, will there be a difference in terms of national economic well-being between using a tariff and using a quota to protect the firm? If so, what is the difference? Clearly explain your answer.
What will be an ideal response?