A profit maximizing monopolist sets output where

A. MC = demand.
B. MC = MR.
C. MC = P.
D. it depends on the average costs in each case.

Answer: B

Economics

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When demand is elastic, an increase in price causes the seller's total revenue to:

A. decrease. B. increase. C. fall to zero. D. remain the same.

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If a labor market that was previously competitive becomes controlled by a monopsony, the wage rate ________ and employment ________

A) rises; increases B) falls; decreases C) rises; decreases D) falls; increase

Economics