When Marginal Revenue Intersects Marginal Cost on a Graph

question 104

Multiple Choice

When marginal revenue intersects marginal cost on a graph:

• A) profits are maximized for a monopoly but not for a competitive firm.
• B) profits are maximized for a competitive firm but not for a monopoly.
• C) a monopolist prices the good at that point.
• D) a monopolist always makes an economic profit.
• E) a monopolist must go up to the demand curve to find the price.

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Definitions:

Subjectivism

The philosophical stance that knowledge and reality are subject to individual interpretation or perception.

Fallacy

An erroneous argument dependent upon an unsound or illogical contention.

Homer Simpson

A fictional character from the animated television series "The Simpsons," known for his humorous and often bumbling personality.

Appeal To Emotion

A logical fallacy where someone tries to win an argument by eliciting an emotional response instead of presenting logical reasons.