Choose one or more: A. Monopolistic firms choose inputs of production at the point where the marginal revenue from each input equals the marginal cost. Competitive firms do not. B. Competitive firms choose inputs of production at the point where the marginal revenue from each input equals the marginal cost. Monopolies do not. C. For competitive firms, the marginal revenue product of an input equals the value of the marginal product. D. If the demand for a product is perfectly elastic, all else being equal, the optimal amount of an input of production is the same for a monopolist as it is for the competitive market as a whole. E. For a monopoly facing a downward-sloping demand curve, the marginal revenue product of an input equals the value of the marginal product. F. Competitive firms and monopolies choose inputs of production at the point where the marginal revenue from each input equals the marginal cost.
Choose one or more: A. Monopolistic firms choose inputs of production at the point where the marginal revenue from each input equals the marginal cost. Competitive firms do not. B. Competitive firms choose inputs of production at the point where the marginal revenue from each input equals the marginal cost. Monopolies do not. C. For competitive firms, the marginal revenue product of an input equals the value of the marginal product. D. If the demand for a product is perfectly elastic, all else being equal, the optimal amount of an input of production is the same for a monopolist as it is for the competitive market as a whole. E. For a monopoly facing a downward-sloping demand curve, the marginal revenue product of an input equals the value of the marginal product. F. Competitive firms and monopolies choose inputs of production at the point where the marginal revenue from each input equals the marginal cost.
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.7P
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Select the statements below that are consistent with the input choice decisions of profit-maximizing competitive firms and monopolies.
Choose one or more:
A. Monopolistic firms choose inputs of production at the point where the marginal revenue from each input equals the marginal cost. Competitive firms do not.
B. Competitive firms choose inputs of production at the point where the marginal revenue from each input equals the marginal cost. Monopolies do not.
C. For competitive firms, the marginal revenue product of an input equals the value of the marginal product.
D. If the demand for a product is perfectly elastic, all else being equal, the optimal amount of an input of production is the same for a monopolist as it is for the competitive market as a whole.
E. For a monopoly facing a downward-sloping demand curve, the marginal revenue product of an input equals the value of the marginal product.
F. Competitive firms and monopolies choose inputs of production at the point where the marginal revenue from each input equals the marginal cost.
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