Author Question: At the level of output where the marginal cost and marginal revenue curves intersect, a monopolist's ... (Read 57 times)

B · **on:** Jun 30, 2018

At the level of output where the marginal cost and marginal revenue curves intersect, a monopolist's demand curve passes above its average total cost curve. The firm will:
a. be able to make a pure economic profit.
b. stay in operation in the short-run, but shut down.
c. shut down in the short-run.
d. increase its price.

Question 2

If a consumer allocates income between goods A and B, total utility is maximized when:
a. the marginal utility of A = the marginal utility of B.
b. the marginal utility of A = the marginal utility of B = 0.
c. the price of A = price of B.
d. marginal utility of A / price of A = marginal utility of B / price of B = 0.
e. marginal utility of A / price of A = marginal utility of B / price of B.