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Tpy6a [65]
3 years ago
7

Under what condition will a monopoly firm incur losses?

Business
1 answer:
Readme [11.4K]3 years ago
3 0
<span>A monopoly would have to make it so the marginal revenue is less than the marginal cost, and in return, the monopoly would end up losing money instead of gaining money. This means that they are spending more money than they are making.</span>
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Due to the ________, a firm strives to maximize its profits and will therefore never pay more for a worker than the value of his
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Due to the first rule of labor markets, a firm strives to maximize its profits and will therefore never pay more for a worker than the value of his/her marginal productivity to the firm. Therefore, the option A holds true.

<h3>What is the significance of profit maximization?</h3>

A process of following and adapting such methods that derive maximum revenue to the firm is known as profit maximization. It should be the primary goal of any firm in the market.

The first rule of labor markets says that when a firm strives for profit maximization, it does not pay the worker or the labor, more than the marginal productivity that the worker bring to the firm.

Therefore, the option A holds true regarding profit maximization.

Learn more about profit maximization here:

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The question seems to be missing. The complete question has been added for better reference.

Due to the ________ a firm strives to maximize its profits and will therefore never pay more for a worker than the value of his/her marginal productivity to the firm.

a. first rule of labor markets

b. demand product value

c. third rule of labor markets

6 0
1 year ago
The news division of WEXS Channel 10 wanted to hire a new morning news anchor. As part of the interview process, candidates were
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What are the requirements for something to be used as money?
Anastasy [175]
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C) 0.0 percent

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Thus, total return = $21 + $1.50 = $22.50 per share.

This is exact same as that of the investment price.

Thus net return = Total benefits - Cost = $22.50 - $22.50 = $0

Since net return is $0 the value of return in percentage shall also be $0.

6 0
4 years ago
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