A monopolist maximizes short-run profit by producing the level of output where:

Question

A monopolist maximizes short-run profit by producing the level of output where: MR = 0, MR = MC, MR = P, P = MC, Suppose there are external costs associated with the production of current. This means that government can best promote efficiency in the current market by: giving a tax break to cement manufactures to include higher production levels. passing zoning restrictions to prevent cement plants from locating in residential neighborhoods. protecting consume from high prices using a subsidy. negotiating trade agreements to increase export of this product and raise the demand. A monopolist that earns positive economic profit in the short run will: always continue to earn positive economic profit in the long run. earn positive economic profit in the long run if it can maintain barriers to entry, assuming no changes in costs or market demand. earn higher economic profit in the long run because of economies of scale. earn zero economic profit in long-run equilibrium.

Explanation / Answer

(35) The correct answer is option (B) MR=MC

(36) The correct answer is option (D)

(37) The correct answer is option (B)

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