Suppose a monopolist charges a price corresponding to the intersection of the marginal cost and marginal revenue curves. If this price is between its average variable cost and average total cost curves, the firm will:
a. earn an economic profit.
b. stay in operation in the short-run, but shut down in the long run if demand remains the same.
c. shut down.
d. none of these.
Question 2
If a consumer is spending all of his/her income in a manner where MUa / Pa is greater than MUb / Pb, 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.
Real Price of Oil, 1861–2010
Intersection of Circles
Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ...
The net price of an article is $79.84. What is the list price if a discount of 23% was allowed?
question in cost accounting
A cowbird with its foster parent. A female cowbird minimizes her cost of parental care by laying her