What is the profit maximizing condition for a vertically integrated firm?
A) Net marginal revenue equals the sum of the marginal costs of the intermediate inputs.
B) Marginal revenue equals the marginal cost of the final output.
C) Net marginal revenue equals the marginal cost of each intermediate good.
D) The sum of net marginal revenues equals the marginal cost of the final output.
C
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Which of the following is most likely to reduce the rate of economic growth?
A) investment in human capital B) a high domestic saving rate C) subsidies for R&D activities D) slow technological progress
A monopolist faces an upward-sloping marginal cost curve. Its profit-maximizing quantity will be
a. at the minimum point of the marginal cost curve b. less than the (total) revenue-maximizing quantity c. equal to the (total) revenue-maximizing quantity d. in the unit elastic segment of the demand curve e. in the inelastic segment of the demand curve