Which of the following examples shows a firm that probably has a monopoly?
a. Birchfield, Inc. exits its market after many other firms enter it.
b. After five years, Samson, Inc’s marginal revenue equals its marginal cost.
c. BRV, Inc.’s economic profits gradually decline over six years until they reach zero.
d. Mongul, Inc. makes large profits for ten years.
d. Mongul, Inc. makes large profits for ten years.
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To maximize its profit, a single-price monopoly produces the quantity at which
A) the difference between marginal revenue and marginal cost is as large as possible. B) marginal revenue equals marginal cost. C) average total cost is at its minimum. D) the marginal cost curve intersects the demand curve. E) the marginal revenue curve intersects the horizontal axis.
A firm's marginal rate of return on investment curve shows the amount
a. saved by the firm at each alternative interest rate b. invested by the firm at each alternative interest rate c. saved by the firm at each alternative rate of time preference d. invested by the firm at each alternative marginal resource cost e. saved by the firm at each alternative marginal revenue product of investment