Which of the Following Statements Is Correct for Both a Monopolist

question 70

Multiple Choice

Which of the following statements is correct for both a monopolist and a perfectly competitive firm? (i)
The firm maximizes profits by equating marginal revenue with marginal cost.
(ii)
The firm maximizes profits by equating price with marginal cost.
(iii)
Demand equals marginal revenue.(iv)
Average revenue equals price.

• A)(i), (iii), and (iv) only
• B)(i) and (iv) only
• C)(i), (ii), and (iv) only
• D)(i), (ii), (iii), and (iv)

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Definitions:

Labour Costs

The total expenditure incurred by employers to compensate their employees, including wages, benefits, and taxes.

Organization

A structured group of people who come together to achieve common goals, often through a division of tasks, responsibilities, and hierarchical structure.

Reduce Expenses

Implementing strategies and actions aimed at cutting down costs and spending less money in personal or business operations.

Headcount

The total number of individuals working for a company, either as full-time employees or in positions equivalent to full-time employment.