Author Question: A monopolist faces an upward-sloping marginal cost curve. Its profit-maximizing quantity will be a. ... (Read 90 times)

imowrer · **on:** Jun 30, 2018

A monopolist faces an upward-sloping marginal cost curve. Its profit-maximizing quantity will be
a. at the minimum point of the marginal cost curve
b. less than the (total) revenue-maximizing quantity
c. equal to the (total) revenue-maximizing quantity
d. in the unit elastic segment of the demand curve
e. in the inelastic segment of the demand curve

Question 2

If the government wants a natural monopoly to earn a fair return or zero economic profit, it will set
a. price equal to marginal cost
b. price equal to average total cost
c. price equal to average revenue
d. marginal cost equal to marginal revenue
e. marginal cost equal to average total cost