When a monopolist maximizes profit, its marginal cost will
a. be less than its average fixed cost.
b. be less than the price per unit of its product.
c. exceed its marginal revenue.
d. equal its average total cost.
b
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Michigan Radio is the state's most listened-to public radio service, attracting approximately 400,000 listeners each week and is funded through listener donations
If Michigan Radio suffers from the free-rider problem then the market would provide an ________ quantity of the public good. A) efficiently small B) efficiently large C) inefficiently small D) inefficiently large
Consider the supply and demand curves depicted in the diagram below. If the government imposed a price ceiling of $15, then sellers will be willing to sell ___, and a black market could develop where the price would be:
A. 24 units; below $15
B. 36 units; above $15
C. 24 units; above $15
D. 36 units; below $15