Author Question: A monopoly will price its product: a. where total revenue is maximized. b. where total costs are ... (Read 32 times)

Wadzanai · **on:** Jun 30, 2018

A monopoly will price its product:
a. where total revenue is maximized.
b. where total costs are minimized.
c. at that point on the market demand curve corresponding to an output level in which marginal revenue equals marginal cost.
d. at that point on the market demand curve which intersects the marginal cost curve.

Question 2

Assume that an individual consumes only coffee and bagels and that the last cup of coffee yields 12 utils and the last bagel 6 utils. If the price of a cup of coffee is 1 and the price of the bagel is .50, we can conclude that the:
a. consumer should consume more coffee and fewer bagels.
b. price of coffee is too high relative to bagels.
c. consumer should consume less coffee and more bagels.
d. consumer is in equilibrium.