Author Question: For both a monopolist and a monopolistically competitive firm: a. price equals average total cost. ... (Read 81 times)

Tazate · **on:** Jun 30, 2018

For both a monopolist and a monopolistically competitive firm:
a. price equals average total cost.
b. price is above marginal revenue.
c. marginal revenue equals zero.
d. marginal cost equals zero.

Question 2

Paul's Plumbing is a small business that employs 12 people. Which of the following is the best example of an implicit cost incurred by this firm?
a. The tax payments on property owned by the firm.
b. The wages paid to the 12 employees.
c. The half of the payroll taxes on the wages of the 12 employees paid by the employers, but not the half paid by the employees.
d. The accounting services provided free of charge to the firm by Paul's wife, who is an accountant.