Which of the following explains why the MC curve is rising in area b?
a. MP in area b is falling.
b. MC in area a is falling.
c. MP rises with output.
d. MC rises with output.
a. MP in area b is falling.
Economics
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Suppose at the current price, the demand for copper is estimated at -3.14. What happens to sales revenue if the government imposes a price ceiling below the free market equilibrium price in the copper market?
A) Sales revenue falls. B) Sales revenue remains unchanged because copper is a necessity for most industries. C) Sales revenue rises. D) It cannot be determined without information on prices.
Economics
In the short-run, a monopoly is most likely to achieve
a. An average rate of return b. Above average profits c. Economic Profits d. Both B&C
Economics