Both questions answered  Question 1: Which of the following is true of a profit-maximizing monopolist firm?   1) It has no incentive to minimize its costs 2) It sets price equal to marginal cost 3) It chooses a production level higher than that which is socially optimal 4) It chooses a production level on the elastic portion of the demand curve 5) It chooses a production level such that marginal revenue is greater than marginal cost   Question 2: In which of the following market structures do firms maximize profits by producing at the point where price is equal to marginal cost?   I. Perfect competition II. Monopoly III. Oligopoly IV. Monopolistic competition   1) I 2) II 3) II and III 4) I and IV 5) I, II, III, and IV

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

 

Both questions answered 

Question 1: Which of the following is true of a profit-maximizing monopolist firm?

 

1) It has no incentive to minimize its costs

2) It sets price equal to marginal cost

3) It chooses a production level higher than that which is socially optimal

4) It chooses a production level on the elastic portion of the demand curve

5) It chooses a production level such that marginal revenue is greater than marginal cost

 

Question 2: In which of the following market structures do firms maximize profits by producing at the point where price is equal to marginal cost?

 

I. Perfect competition

II. Monopoly

III. Oligopoly

IV. Monopolistic competition

 

1) I

2) II

3) II and III

4) I and IV

5) I, II, III, and IV

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Demand and Supply Curves
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education