The Golden Rule of Output Determination Is,in Fact,the Same for Both

question 57

Multiple Choice

The Golden Rule of Output Determination is,in fact,the same for both a monopolist and a perfectly competitive firm because

• A) price is equal to marginal cost for both market types.
• B) price and marginal revenue are identical for a perfectly competitive firm.
• C) price exceeds marginal revenue for both market types.
• D) profits are maximized for both firm types as long as marginal revenue exceeds marginal cost.
• E) marginal revenue and marginal cost curves are identical for both market types.

---

Definitions:

Valid

A term applied to a contract that includes all four elements of a contract—agreement (offer and acceptance), consideration, contractual capacity, and legal object—and thus is enforceable.

Recognizable Beneficiaries

are individuals or entities that can clearly be identified as intended to benefit from a contract, trust, or legal arrangement, even if not directly party to it.

Agents of Beneficiaries

Individuals or entities acting on behalf of those who are to receive benefits or rights under a contract, will, or trust.

Birthday Present

A gift given to someone on the anniversary of their birth.