When the total product curve is falling, the marginal product of labor is negative. A price-taking firm cannot influence the price of the product. A monopoly maximizes profit by choosing the quantity at which marginal revenue greater than marginal cost. Total cost always greater then fix cost never equal to fix cost. The key difference between a competitive firm and a monopoly is the ability to influence the price.
When the total product curve is falling, the marginal product of labor is negative. A price-taking firm cannot influence the price of the product. A monopoly maximizes profit by choosing the quantity at which marginal revenue greater than marginal cost. Total cost always greater then fix cost never equal to fix cost. The key difference between a competitive firm and a monopoly is the ability to influence the price.
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.10P: Wonopoly and natural resource prices Suppose that a firm is the sole owner of a stock of a natural...
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Q1-Select the true or false for the following statement also give the explanation and support your answer with graphical presentation where necessary. Explanation is compulsory 3 to 6 line.
- When the total product curve is falling, the marginal product of labor is negative.
- A
price -taking firm cannot influence the price of the product. - A
monopoly maximizes profit by choosing the quantity at which marginal revenue greater than marginal cost. - Total cost always greater then fix cost never equal to fix cost.
- The key difference between a competitive firm and a monopoly is the ability to influence the price.
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