Selling a Good at a Price Determined by the Intersection

question 557

Multiple Choice

Selling a good at a price determined by the intersection of the demand curve and the marginal cost curve is consistent with the
(i) socially-optimal level of output.
(ii) market solution for profit-maximizing competitive firms.
(iii) market solution for a profit-maximizing monopoly.

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

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Definitions:

Third Number

In sequences, the third number is the term that comes immediately after the second and is preceded by the fourth number, if available.

Positive Numbers

Positive numbers are numbers greater than zero, found on the right side of the real number line, and are used to represent quantities that have magnitude only.

System of Linear Equations

A collection of one or more linear equations involving the same sets of variables, where the solution is the set of values that satisfy all equations simultaneously.

Matrix

A rectangular array of numbers, symbols, or expressions, arranged in rows and columns, that is used in mathematical and computational contexts.