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Author Question: Assume a monopolist's marginal cost and marginal revenue curves intersect and the demand curve ... (Read 197 times)

nautica902

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on: Jun 30, 2018
Assume a monopolist's marginal cost and marginal revenue curves intersect and the demand curve passes above its average total cost curve. The firm will:
 a. make an economic profit.
  b. stay in operation in the short run, but shut down in the long run.
  c. shut down in the short run.
  d. lower the price.

Question 2

A consumer buys only food and clothing. If the quantity of food bought increases while that of clothing remains the same, the marginal utility of food will:
 a. fall, but not as fast as the marginal utility of clothing falls.
  b. rise, but not as fast as the marginal utility of clothing rises.
  c. rise relative to the marginal utility of clothing.
  d. fall relative to the marginal utility of clothing.


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nathang24

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

d


nautica902

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Reply #2 on: Jun 30, 2018
Thank you :)


nathang24

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Reply #3 on: Jun 30, 2018
Happy to help you


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