A monopolist is able to maximize its profits by:
a. setting the price at the level that maximizes its per-unit profit
b. producing output where marginal revenue equals marginal cost and charging a price along the demand curve.
c. producing output where marginal revenue equals marginal cost and setting price at the demand curve's highest point.
d. producing output where price is equal to its marginal cost.
b
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The cost of producing a tube of tooth paste is $0.05. If the market for tooth paste is monopolistically competitive, a manufacturer who charges $0.05 for each bottle will ________
A) shut down production in the short run B) exit the industry in the long run C) incur a loss in the short run D) earn zero economic profits in the short run
Straight line pay for performance
a. Eliminates the managers' incentives to lie about the budget b. Eliminates the perverse incentive to hide information c. Does not link compensation to meeting a budget target d. All of the above