The Condition for Profit-Maximization for Competitive Firms and Monopolies Is

question 170

True/False

The condition for profit-maximization for competitive firms and monopolies is the same: marginal revenue equals marginal cost. Hence, monopolies are efficient.

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Definitions:

Inelastic

Describes a situation where the demand or supply of a good or service is relatively unresponsive to changes in price.

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of the product, such as alcohol, tobacco, and gasoline.

Borne

The bearing or enduring of costs, responsibilities, or consequences by an entity, often in the context of who ultimately pays for or suffers from economic decisions.

Progressive

A political and social philosophy advocating for reforms and innovations aimed at addressing inequalities and improving the welfare of the population.