Author Question: A monopolist earns an economic profit only when: a. average total cost equals than price. b. ... (Read 102 times)

burton19126 · **on:** Jun 30, 2018

A monopolist earns an economic profit only when:
a. average total cost equals than price.
b. marginal cost equals price.
c. marginal revenue equals price.
d. average total cost is less than price.

Question 2

Assume that an individual consumes only hotdogs and colas and that the last hotdog consumed yields 15 utils and the last cola 10 utils. If the price of a hotdog is 1 and the price of a cola is .50, we can conclude that the:
a. consumer should consume more hotdogs and less cola.
b. price of hotdogs is too high.
c. consumer should consume fewer hotdogs and more cola.
d. consumer is in equilibrium.