At a certain level of production, the marginal revenue and marginal cost of a monopolist are $8 and $6, respectively. Which of the following statements is true in this context?
A) The monopolist should expand production.
B) The monopolist should contract production.
C) The profits of the monopolist are maximized.
D) The profits of the monopolist are minimized.
A
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The practice of setting price by increasing the average costs of production by some percentage is referred to as:
A) average cost pricing. B) percentage pricing. C) rate-of-return pricing. D) markup pricing.
Recall the Application about the effectiveness of committees in making decisions about monetary policy to answer the following question(s). Recall the Application. The experiment conducted by Blinder showed that the actual process of having committee meetings and discussions:
A. tended to polarize the group into two distinct factions. B. improved the group's overall performance. C. magnified the individual group members' differences. D. related to the average performance of the individual group members.