When Marginal Revenue Intersects Marginal Cost on a Graph

question 50

Multiple Choice

When marginal revenue intersects marginal cost on a graph,

• A) profits are maximized for a monopolist but not for a competitive firm.
• B) profits are maximized for a competitive firm but not for a monopolist.
• C) a monopolist prices the good at that point.
• D) a monopolist always makes an economic profit.
• E) a monopolist must go up to the demand curve to find the price.

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Definitions:

Two

The numerical value representing a quantity equal to one plus one, often considered in contexts of comparison or difference.

Drafting

The preliminary stage of writing or drawing up documents, plans, designs, or legislation before they are finalized.

Research

the systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Surveying

The act of examining and recording the features of a piece of land to accurately define its boundaries and create maps or plots.