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:

Fixed Number

A specific, unchanging quantity or value, often used in contexts requiring precise, constant measurements or counts.

Secured Bonds

Bonds that are backed by collateral, such as real estate or other assets, to reduce the risk of default to investors.

Bond Principal

The face value of a bond, or the amount of money the bond issuer will pay back to the bondholder at maturity.

Serial Bonds

Bonds that are issued under the same contract but mature at different times, allowing the issuer to spread the repayment over several periods.