A. Once a monopolist has determined the profit-maximizing level of output, the p
ID: 1128317 • Letter: A
Question
A. Once a monopolist has determined the profit-maximizing level of output, the price they should charge is given by
the average total cost curve.
the marginal cost curve.
the marginal revenue curve.
the demand curve.
B. Which of the following is NOT a characteristic of a monopoly?
sole seller
no close substitutes
barriers to entry
buyers and sellers are price takers
the average total cost curve.
the marginal cost curve.
the marginal revenue curve.
the demand curve.
B. Which of the following is NOT a characteristic of a monopoly?
sole seller
no close substitutes
barriers to entry
buyers and sellers are price takers
Explanation / Answer
A)
Answer
Option fourth
The demand curve
the firm produces at MR=MC and the price is found from the denmand curve at the output level.
B)
buyers and sellers are price takers
the firm is price maker because it faces the downward demand curve