Question 1
When a monopolist is ________, it has equated marginal revenue and marginal cost.
◦ maximizing its total revenue
◦ breaking even
◦ producing efficiently
◦ maximizing profits
Question 2
The Lend Me Your Ears Company monopolizes the production of a specialized hearing aid. The Lend Me Your Ears Company will find it profitable to increase the production of the hearing aids as long as marginal revenue is
◦ less than marginal cost.
◦ equal to marginal cost.
◦ greater than marginal cost.
◦ positive.