When a monopolist faces a fixed marginal cost of production, ...

[Alygatorr01285]

When a monopolist faces a fixed marginal cost of production, profit is maximized if:
 a. the slope of the tangent to the total revenue curve is equal to the slope of the total cost curve.
  b. the slope of the total cost curve is 1.
  c. the marginal revenue is zero.
  d. the slope of the tangent to the total revenue curve is equal to the slope of the marginal revenue curve.

Question 2

Firms that have downward-sloping demand curves:
 a. earn positive economic profits even in the long run.
  b. produce homogeneous products.
  c. operate in a perfectly competitive market structure.
  d. enjoy monopoly or market power.
  e. are price takers.

[emilymalinowski12]

Answer to Question 1

A

Answer to Question 2

d