Author Question: Which of the following statements best describe the price, output, and profit conditions of ... (Read 14 times)

Wadzanai · **on:** Jun 30, 2018

Which of the following statements best describe the price, output, and profit conditions of monopoly?
a. Price will equal marginal cost at the profit-maximizing level of output and profits will be positive in the long-run.
b. Price will always equal average variable cost in the short-run and either profits or losses may result in the long run.
c. In the long-run, positive economic profit will be earned.
d. All of these are true.

Question 2

Suppose a consumer is spending his or her entire budget. In order to obtain the most satisfaction from his or her purchases, all goods should:
a. provide the same marginal utility per dollar.
b. be consumed in equal quantities.
c. have identical marginal utilities.
d. give the consumer matching amounts of total utility.