To Maximize Profit, a Dominant Firm Sets ______Equal to ______

question 133

Multiple Choice

To maximize profit, a dominant firm sets ______equal to ______.

• A)residual marginal revenue; marginal cost
• B)residual demand; marginal cost
• C)residual marginal revenue; residual marginal cost
• D)marginal revenue; residual marginal cost

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Definitions:

Decrease

A reduction in amount, size, strength, or frequency.

Market Demand Curve

A graphical representation that shows the relationship between the price of a good and the total amount of the good that all consumers are willing to purchase at each price level.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a specific price.

Price

The amount of money expected, required, or given in exchange for something else, such as goods or services.