A monopolist can earn an economic profit only when: a. marginal ...

[Tirant22]

A monopolist can earn an economic profit only when:
 a. marginal cost equals marginal revenue.
  b. marginal cost equals price.
  c. average total cost is less than price.
  d. all of these.

Question 2

Assume a consumer purchases a combination of goods X and Y such that MUx / Px = 20 units of utility per dollar and MUy / Py = 10 units of utility per dollar. To maximize utility, the consumers should buy:
 a. neither X nor Y.
  b. less of both X and Y.
  c. more of both X and Y.
  d. more of X and less of Y.
  e. less of X and more of Y.

[wfdfwc23]

Answer to Question 1

c

Answer to Question 2

d