Both questions answered Question 1: Which of the following is true of a profit-maximizing monopolist firm? 1) It has no incentive to minimize its costs 2) It sets price equal to marginal cost 3) It chooses a production level higher than that which is socially optimal 4) It chooses a production level on the elastic portion of the demand curve 5) It chooses a production level such that marginal revenue is greater than marginal cost Question 2: In which of the following market structures do firms maximize profits by producing at the point where price is equal to marginal cost? I. Perfect competition II. Monopoly III. Oligopoly IV. Monopolistic competition 1) I 2) II 3) II and III 4) I and IV 5) I, II, III, and IV
Both questions answered
Question 1: Which of the following is true of a profit-maximizing monopolist firm?
1) It has no incentive to minimize its costs
2) It sets
3) It chooses a production level higher than that which is socially optimal
4) It chooses a production level on the elastic portion of the
5) It chooses a production level such that marginal revenue is greater than marginal cost
Question 2: In which of the following market structures do firms maximize profits by producing at the point where price is equal to marginal cost?
I.
II.
III. Oligopoly
IV.
1) I
2) II
3) II and III
4) I and IV
5) I, II, III, and IV
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