Figure 11-3
In Figure 11-3, which of the following is true, whether or not the monopolist is maximizing profits?
a.
MR < P
b.
MC = P
c.
MC < AC
d.
MR = P
a
Economics
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"Inflation Targeting Rule" is a special case of a
A) Taylor Rule with zero weight on output. B) Taylor Rule with zero weight on inflation. C) Taylor Rule with an equal weight on output and inflation. D) Taylor Rule with different but positive weights on output and inflation.
Economics
A pure monopolist determines that at the current level of output the marginal cost of production is $2.00, average variable costs are $2.75, and average total costs are $2.95. The marginal revenue is $2.75. What would you recommend that the monopolist
do to maximize profits? What will be an ideal response?
Economics