To maximize its profit, a perfectly competitive firm produces so that ________ and a single-price monopoly produces so that ________

A) MR = MC; MR > MC
B) MR > MC; MR = MC
C) MR = MC; MR = MC
D) MR > MC; MR > MC
E) P = ATC; P = ATC

C

Economics

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Consider the demand for labor in the computer chip industry. The demand for labor

A) is derived from the demand for computer chips. B) is shown by a perfectly elastic demand for labor. C) is shown by a perfectly inelastic demand for labor. D) has a demand curve that is backward bending.

Economics

When externalities are present, market prices do not reflect all the social costs or benefits of the activity

a. True b. False

Economics