The monopolist faces a downward sloping demand curve, and maximizing profits requires the monopolist to
A) accept the market price for its product.
B) will produce where the demand curve is inelastic.
C) search for the price consistent with producing to the point at which marginal revenue equals marginal cost.
D) search for the highest possible price consistent with maximizing its revenues, irrespective of its explicit and implicit opportunity costs.
C
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The _____________________: the ratio of a property's annual net income to its value, is a fundamental pricing metric in commercial real estate markets.
Fill in the blank(s) with the appropriate word(s).
Which of these is an example of rational inattention?
A) submitting a paper with a few typos, knowing that they won't affect the grade B) sleeping in later than you had intended C) a firm delaying price changes to avoid losing customers D) a firm being unsure of its competitors' prices E) a firm changing prices so often its customers stop noticing