Figure 10.2 shows a monopolist's demand curve. Suppose that the marginal cost is $6 for all units and the current output level is 4 units. Then which of the following is true?
A. The marginal revenue is less than the marginal cost.
B. The price is greater than the average total cost.
C. The firm is producing the profit maximizing level of output.
D. All of these are correct.
Answer: A
Economics
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When the price level rises less than expected, a firm with a sticky price will sell its output at a price that is
a) more than the firm desires and increase its production. b) more than the firm desires and decrease its production. c) less than the firm desires and increase its production. d) less than the firm desires and decrease its production.
Economics
The shutdown point occurs at the level of output for which the ________ is at its minimum
A) marginal cost B) average variable cost C) average fixed cost D) total cost
Economics