When a monopolist chooses the level of output where marginal cost equals marginal revenue:
A. profits are maximized.
B. price is set at marginal revenue.
C. price is equal to average total costs.
D. total revenue is maximized.
A. profits are maximized.
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According to the law of diminishing marginal product, if all the inputs to a firm are increased in equal proportions, a. output will increase more than in proportion to the increase in the inputs
b. output will increase less than in proportion to the increase in the inputs. c. output will increase exactly in proportion to the increase in the inputs. d. The law of diminishing returns says nothing about what will happen to output when all inputs are increased in equal proportions.
In a winner-take-all system, the highest incomes go to people with questionable skills, but who are the most competitive in the labor market
Indicate whether the statement is true or false