Author Question: If a monopolist sets her output such that marginal revenue, marginal cost and average total cost are ... (Read 344 times)

geodog55 · **on:** Jul 1, 2018

If a monopolist sets her output such that marginal revenue, marginal cost and average total cost are equal, economic profit must be:

A) negative.
B) positive.
C) zero.
D) indeterminate from the given information.

Question 2

If price is between AVC and ATC, the best and most practical thing for a perfectly competitive firm to do is

A) raise prices.
B) lower prices to gain revenue from extra volume.
C) shut down immediately, but not liquidate the business.
D) shut down immediately and liquidate the business.
E) continue operating, but plan to go out of business.