Indicate whether True or False a)In perfect competition, price is equal to marginal revenue while in...

Indicate whether True or False

a)In perfect competition, price is equal to marginal revenue while in monopoly price is greater than marginal revenue

b)No supply curve exists for a monopoly in the sense that a supply curve exists for a perfectly competitive firm

c)Because the marginal revenue curve for a monopolist lies below its demand curve,the profit -maximizing price of the monopolist will be above marginal cost

d)The profit- maximizing level of output for a monopolist is the one at which marginal revenue equals marginal cost

Solutions

Expert Solution

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

True or false? a) “Under perfect competition the value of the Lerner Index is equal to...

True or false? a) “Under perfect competition the value of the Lerner Index is equal to 0.” _____________ b) “In a monopolistic market the deadweight loss does not always occur”. _____________ c) “The existence of scale economies is the main reason for the existence of multiproduct firms”. _____________ d) “The short run industry supply curve is obtained by adding up the average cost curves of all the firms in the industry.” ______________

True/False: Indicate whether the following statement is true or false. If it is false, indicate the...

True/False: Indicate whether the following statement is true or false. If it is false, indicate the reason. If it is true, indicate what makes it true. Just stating true or false will not earn any points. "It is not possible to have concave preferences."

1)TRUE OR FALSE a)For a firm in a competitive market,marginal revenue is always equal to average...

1)TRUE OR FALSE a)For a firm in a competitive market,marginal revenue is always equal to average revenue b)The assumption of free entry and exit is necessary for firms in a competitive market to be price takers c)A profit-maximizing firm in a competitive will increase production when average revenue exceeds marginal cost d)In marketing a short-run profit -maximizing production decision , the firm must consider both fixed and variable cost e)A profit-maximizing firm in a competitive market will earn zero accounting...

1.Marginal profit is equal to marginal revenue plus marginal cost. True or false Spacely Sprockets' short-run...

1.Marginal profit is equal to marginal revenue plus marginal cost. True or false Spacely Sprockets' short-run cost curve is C(q,K)=25q2K+15KC(q,K)=25q2K+15K, where q is the number of Sprockets produced and K is the number of robot hours Spacely hires. Currently, Spacely 2.hires 10 robot hours per period. The short-run marginal cost curve is MC(q,K)=50qKMC(q,K)=50qK. If Spacely receives $250 for every sprocket he produces, his profit maximizing output level is 50. True or False 3.Consider a competitive market in which the market...

True or False. Indicate whether the statement is true or false. If false, explain in the...

True or False. Indicate whether the statement is true or false. If false, explain in the space provided the statement why it is false, or simply correct the statement. Smooth muscle contraction is regulated by the autonomic nervous system. During exercise, the sympathetic nerves that innervate the smooth muscles of bronchioles and arterioles regulate the contraction of these smooth muscles to increase ventilation and cardiac output. 2. Multiple choice: Choose one best statement. An infant born prematurely has neonatal respiratory...

Indicate whether each of the following statements is true or false. If false, indicate how to...

Indicate whether each of the following statements is true or false. If false, indicate how to correct the statement. a. The amount reported for accumulated other comprehensive income (AOCI) on the balance sheet must be a positive amount consistent with all other stockholders’ equity accounts. b. Changes in AOCI are reflected in other comprehensive income, which is different from net income. c. Other comprehensive income does not imply a change in cash.

73. In perfect competition, the marginal revenue curve and the demand curve facing the firm are...

73. In perfect competition, the marginal revenue curve and the demand curve facing the firm are identical. intersects the demand curve when marginal revenue is minimized. is always above the demand curve facing the firm. is always below the demand curve facing the firm. 75. Marginal revenue is the additional profit the firm earns when it sells an additional unit of output. the added revenue that a firm takes in from selling an additional unit of output. the difference between...

True/False Indicate whether the statement is true or false. ____1.The form of organization for a business...

True/False Indicate whether the statement is true or false. ____1.The form of organization for a business is not an important issue, as this decision has very little effect on the income and wealth of the firm's owners. ____2.The major advantage of a regular partnership or a corporation as a form of business organization is the fact that both offer their owners limited liability, whereas proprietorships do not. ____3.There are three primary disadvantages of a regular partnership: (1) unlimited liability, (2)...

True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and...

True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and briefly explain your answer. If your answer depends on any assumptions, state them clearly. Use graphs or equations to illustrate your answer whenever it is helpful. 1. A worker should never trust an implicit contract with an employer that pays them less than their marginal product when they first join the firm, but more than their marginal product after many years with the firm,...

True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and...

True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and briefly explain your answer. If your answer depends on any assumptions, state them clearly. Use graphs or equations to illustrate your answer whenever it is helpful. 11. In efficiency wage models, employers take the market wage as given, and then choose the level of effort at which employees are required to work. 12. Mandatory retirement only makes sense in a delayed compensation (or underpayment-overpayment)...

Subjects