Which of the following rules is satisfied when a monopoly maximizes profits?
A. Price < MC.
B. MR = MC.
C. Price = AVC.
D. MR > MC.
Answer: B
Economics
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C/D is the currency drain ratio and R/D is the desired reserve ratio. The money multiplier equals
A) . B) . C) . D) . E) .
Economics
Assume a diagram in which a budget line is imposed on an indifference map. A consumer will maximize her utility:
A. at any point where the budget line and an indifference curve intersect. B. at either point where the budget line intersects the horizontal and vertical axes. C. where the budget line is tangent to an indifference curve. D. where the ratio of the two product prices equals the reciprocal of the consumer's income.
Economics