Following the assumption that firms maximize profits, how will the price and out
ID: 1208193 • Letter: F
Question
Following the assumption that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?
Output will be too small and its price too high.
Output will be too large and its price too high.
Output will be too small and its price too low.
Output will be too large and its price too low.
The total revenue curve for a monopolist will ________.
start high, rise, and then decline.
start low, rise, and then decline
start high, decline, and then rise
Refer to the figure below. The total cost of production is:
330
510
160
400
Explanation / Answer
Output will be too small and its price too high.
The total revenue curve for a monopolist will _start high, rise, and then decline.
Total cost of production is 160.