Which of the following is true of pure monopoly?
a. Monopoly expands the options available to consumers.
b. Monopoly results in allocative inefficiency.
c. Profits and losses induce firms to enter and exit from industries.
d. Monopoly works well when governments regulate prices.
B
Economics
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If the ATC curve has a positive slope, then the MC curve must be
A) horizontal. B) vertical. C) above the ATC curve. D) below the ATC curve.
Economics
If a monopolistically competitive firm is producing 50 units of output where marginal cost equals marginal revenue, total cost is $1,674 and total revenue is $2,000, its average profit is
A) $326. B) $40. C) $6.52. D) impossible to determine without additional information.
Economics