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(This question refers to the MRU video 'Maximizing Profit under Monopoly'.) The profit-maximizing quantity for a monopolist is found where marginal...

(This question refers to the MRU video 'Maximizing Profit under Monopoly'.) The profit-maximizing quantity for a monopolist is found where marginal revenue equals marginal cost. How does the monopolist find the profit-maximizing price?

Select one:

a. It is equal to the height of the supply curve at the profit-maximizing quantity.

b. It is equal to the height of the demand curve at the profit-maximizing quantity.

c. It is equal to the marginal revenue at the profit-maximizing quantity.

d. It is equal to the marginal cost at the profit-maximizing quantity.


(This question refers to the MRU video 'The Balance of Industries and Creative Destruction'.) Which of the following is NOT a condition that is required for the invisible hand to minimize total costs of production and to achieve the proper balance of industries?

Select one:

a. Prices must accurately signal costs.

b. Markets must be competitive.

c. Prices must accurately signal benefits.

d. Markets must be regulated.

Top Answer

1 b) It is the height of the demand curve at the profit... View the full answer

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