We know that in the long run, perfectly competitive firms produce where MC = MR and end up making zero economic profit. The profit-maximizing output level for a monopolist is where
a. price is maximized
b. quantity is maximized
c. ATC curve is minimized
d. maximum efficiency is achieved
e. MR = MC
E
Economics
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D. most decisions do not involve sacrifices or trade-offs
A. there are always trade-offs between economic goals. B. all production involves the use of scarce resources and thus the sacrifice of alternative goods. C. marginal analysis is used in economic reasoning. D. choices need not be made if behavior is rational.
Economics
Refer to the table below and information. The average variable cost of the firm when 5 units of output are produced is:
The fixed cost of the firm is $500. The firm's total variable cost is indicated in the table.
A. $100
B. $200
C. $300
D. $400
Economics