Suppose a Monopolistically Competitive Firm Is Making a Profit,but It

question 236

Multiple Choice

Suppose a monopolistically competitive firm is making a profit,but it can increase its profits by increasing output.At the current level of output:

• A)marginal revenue is greater than marginal cost.
• B)price is less than marginal cost.
• C)price is less than average total cost.
• D)marginal revenue is less than marginal cost.

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Definitions:

Compensating Winding

The winding embedded in the main field poles of a DC machine. The compensating winding is used to help overcome armature reaction.

Armature

The rotating part of an electric generator or motor that interacts with the magnetic field to produce or use electricity.

Series

A connection of electrical components in a circuit end-to-end such that there is only one path for current flow, leading to the same current through all components.

Two-phase Power System

A two-phase power system is an electrical power distribution method that uses two alternating currents, which are offset in phase by one-quarter of a cycle (90 degrees).