A profit-maximizing monopolist will receive zero profits when
A) the average total cost curve lies above the demand curve for all possible rates of output.
B) the average total cost curve is tangent to the demand curve at the profit maximizing price.
C) marginal revenue, marginal cost, and average total cost are all equal.
D) a second firm enters the industry.
B
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Explain how the decision by parents to not immunize their children, hoping that their children will not get sick because other parents have had their children immunized, is an example of free riding
How is this behavior dangerous to the public and therefore not socially optimal?
Which of the following is not a condition of long-run equilibrium for perfectly competitive firms?
a. price is equal to marginal cost b. price is equal to minimum short-run average total cost c. price is equal to minimum long-run average cost d. price is equal to marginal revenue e. economic profit is positive