Homework Clinic
Social Science Clinic => Economics => Topic started by: Melani1276 on Jun 29, 2018
-
If a monopolist's price is 50 at the output where marginal revenue equals marginal cost and average total cost is 43, then the incremental profit from the last unit sold is 7.
Indicate whether the statement is true or false
Question 2
The supply curve of a perfectly competitive firm in the short run is
A) the portion of the firm's marginal cost curve above the minimum point of the average total cost curve.
B) the firm's average variable cost curve.
C) the portion of the firm's marginal cost curve above the minimum point of the average variable cost curve.
D) the portion of the firm's marginal cost curve below the minimum point of the average variable cost curve.
-
Answer to Question 1
FALSE
Answer to Question 2
C