The profit-maximizing output level for a monopolist occurs where marginal revenue equals marginal cost.
Answer the following statement true (T) or false (F)
True
All firms, monopolies or otherwise, maximize profits by equating marginal cost and marginal revenue.
Economics
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Bonnie can produce either 10 hats or 20 scarves in a month. Phil can produce either 10 hats or 5 scarves in a month. Therefore:
A) Phil has a comparative advantage in hats, Bonnie in scarves. B) Bonnie has a comparative advantage in hats, Phil in scarves. C) Phil has a comparative advantage in both hats and scarves. D) Bonnie has a comparative advantage in both hats and scarves. E) Neither of them has a comparative advantage in hats.
Economics
In the above figure, the marginal cost of the second ton of wheat is
A) $25. B) $50. C) $75. D) none of the above
Economics