Author Question: If a monopolist's price is 50 at 63 units of output and marginal revenue equals marginal cost, and ... (Read 250 times)

vinney12 · **on:** Jun 29, 2018

If a monopolist's price is 50 at 63 units of output and marginal revenue equals marginal cost, and average total cost equals 43, then the firm's total profit is

A) 3,150. B) 2,709. C) 441. D) 7.

Question 2

Refer to Table 14-4. Does Baine have a dominant strategy and if so, what is it?

A) There are two dominant strategies: if Alistair increases its advertising budget, then Baine's best bet is to keep its budget the same but if Alistair does not increase its budget then Baine should raise its advertising budget
B) Yes, Baine should keep its advertising budget as is.
C) Yes, Baine should increase its advertising budget.
D) No, there is no dominant strategy.