An imperfectly competitive producer:
A) can potentially earn a profit.
B) faces a downward-sloping demand curve.
C) maximizes profit by setting the price where marginal revenue equals marginal cost.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

An imperfectly competitive producer faces a downward-sloping demand curve and can potentially earn a profit. The producer maximizes profit by setting the price where marginal revenue equals marginal cost. Therefore, all of the above statements are true for an imperfectly competitive producer.

An Imperfectly Competitive Producer