A firm in monopolistic competition maximizes its profit by ________
A. differentiating its good and producing the quantity at which price equals marginal revenue
B. producing the quantity at which marginal revenue equals marginal cost and then adding a markup
C. raising its price and producing so that it always has excess capacity
D. producing the quantity at which marginal cost equals marginal reve-nue and charging the highest price at which it can sell that quantity
D Figure 13.1 shows how a monopolistically competitive firm maximizes its profit.
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Steve Ballmer organized government spending data on the basis of four "missions" for government that he identified in the preamble to the U.S. Constitution. The data
A) reinforces previously gathered data that most of the basic activities of government are conducted at the state and local levels rather than at the federal level. B) reinforces previously gathered data that most of the basic activities of government are conducted at the federal level rather than at state and local levels. C) contradicts previously gathered data that most of the basic activities of government are conducted at the state and local levels rather than at the federal level. D) contradicts previously gathered data that most of the basic activities of government are conducted at the federal level rather than at state and local levels.
A potential problem with piece-rate plans is that:
A. it is difficult for managers to enforce. B. workers have no incentive to work hard. C. workers may put little emphasis on the quality of the good. D. workers will have a tendency to under-produce the good.