Excercise 4_due Nov Mon 14

Excercise 4_due Nov Mon 14 - Excercise 4 Name_ MULTIPLE...

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Excercise 4 Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) When the demand curve is downward sloping, marginal revenue is A) equal to price. B) less than price. C) equal to average revenue. D) more than price. 1) 2) Assume that a proft maximizing monopolist is producing a quantity such that marginal revenue exceeds marginal cost. We can conclude that the A) frm's output does not maximize proft, but we cannot conclude whether the output is too large or too small. B) frm's output is larger than the proft maximizing quantity. C) frm is maximizing proft. D) frm's output is smaller than the proft maximizing quantity. 2) 3) As the manager oF a frm you calculate the marginal revenue is $152 and marginal cost is $200. You should A) expand output until marginal revenue equals zero. B) expand output. C) reduce output beyond the level where marginal revenue equals zero. D) do nothing without inFormation about your fxed costs. E) reduce output until marginal revenue equals marginal cost. 3)
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This note was uploaded on 12/16/2011 for the course ECON 303 at USC.

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Excercise 4_due Nov Mon 14 - Excercise 4 Name_ MULTIPLE...

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