Help with economics homework, please need a perfect score (introductory macro)

Posted on 2014-03-14 11:45:00 in Economics by JOHN

I've got three questions from a past quiz that i need to know the correct answer to, as the questions will be on the mid term. i'm unsure for these 3 questions. It's for an introductory economics class at ASU



A monopolist maximizes profits at the output at which

a. total revenue is at its greatest, assuming that the firm has both fixed and variable costs.

b. price equals marginal cost.

c. price exceeds marginal cost by the greatest amount.

d. none of the above



The difference between profit seeking under perfect competition and profit seeking under monopoly is that

a. under the former output will increase and price will decrease, whereas under the latter only output will increase.

b. under the former output will increase and price may increase, whereas under the latter output will increase and price will decrease.

c. under the former new firms will enter the industry, whereas under the latter the firm will simply raise its price and earn higher profits.

d. none of the above



If a monopoly firm produces the quantity of output at which MR = MC, and charges a price greater than average total cost, it necessarily

a. maximizes the difference between its total revenue and total cost.

b. maximizes the difference between its total fixed cost and total variable cost.

c. maximizes total revenue.

d. earns profit.

e. a, b, and d





Thanks so much, guys.

---

Answer Comment

No Answers Posted Yet.