Author Question: A monopolist will operate in the short run if which of the following is above average variable cost? ... (Read 16 times)

plus1 · **on:** Jun 30, 2018

A monopolist will operate in the short run if which of the following is above average variable cost?
a. Marginal cost.
b. Marginal revenue.
c. Price.
d. All of these.

Question 2

Suppose a consumer is spending all of his/her income on two goods, A and B, in a manner where MUa = 15 and MUb = 75, and the Pa = 3 and the Pb = 15, then the consumer:
a. is maximizing his/her utility.
b. should increase his/her purchases of B and decrease the purchases of A.
c. should spend more money on both goods.
d. should spend less money on both goods.
e. should increase the purchases of A and decrease the purchases of B.