To maximize profit, the monopolist produces on the ________ portion of the demand curve where ________.
A: elastic; price equals marginal cost
B: elastic; marginal revenue equals marginal cost
C: inelastic; price equals marginal revenue
D: inelastic; marginal revenue equals marginal cost
A: elastic; price equals marginal cost
B: elastic; marginal revenue equals marginal cost
C: inelastic; price equals marginal revenue
D: inelastic; marginal revenue equals marginal cost
举一反三
- Monopolists will maximize profit by producing at an output level where which of the following conditions exists（） A: Price = marginal revenue = marginal cost. B: Price = demand = marginal revenue = marginal cost. C: Marginal revenue = marginal cost ＜ price.
- Which type of profit maximizing firm will choose to produce where marginal revenue equals marginal cost?
- A firm maximizes profit by operating at the level of output where A: average revenue equals average cost. B: average revenue equals average variable cost. C: total costs are minimized. D: marginal revenue equals marginal cost. E: marginal revenue exceeds marginal cost by the greatest amount.
- In short run the shutdown point is that point at which A: price equals marginal cost. B: average fixed cost equals marginal cost. C: average variable cost equals marginal cost. D: average total cost equals marginal cost.
- A monopolist maximizes profits by A: producing an output level where marginal revenue equals marginal cost. B: charging a price that is greater than marginal revenue. C: earning a profit of (P - MC) x Q. D: Both a and b are correct.