A monopolist finds the output (Q*) rate that maximizes profit. It finds the price by
A) taking the height of the marginal revenue curve at output rate Q*.
B) taking the height of the marginal cost curve at output rate Q*.
C) taking the height of the demand curve at output rate Q*.
D) setting price equal to marginal cost.
C
Economics
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Intergovernmental revenue is an insignificant source of state and local revenue
a. True b. False
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The above figure shows the cost curves for a typical firm in a competitive market. If p = 10, then
A) the firm will maximize its profit by producing 5 units. B) the firm will maximize its profit by producing 60 units. C) producing 5 or 60 units will yield equal profits. D) Not enough information.
Economics