| 21. | Left to its own devices, a profit-seeking natural monopoly will produce where marginal revenue equals marginal costs.
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| 22. | From marginal price determination theory, the optimum level of output is that where marginal cost equals marginal revenue.
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| 23. | It all depends on the shape and position of the demand curve and its accompanying marginal revenue curve.
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| 24. | For example, the marginal revenue curve would have a negative gradient, due to the overall market demand curve.
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| 25. | As quasi-monopolists, firms set quantity where marginal cost equals marginal revenue and price where this quantity intersects demand.
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| 26. | Technically, shutdown occurs if marginal revenue is below average variable cost at the profit-maximizing positive level of output.
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| 27. | Each group of consumers effectively becomes a separate market with its own demand curve and marginal revenue curve.
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| 28. | A firm with market power will set a price and production quantity such that marginal cost equals marginal revenue.
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| 29. | The gap in the marginal revenue curve means that marginal costs can fluctuate without changing equilibrium price and quantity.
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| 30. | In this case, the perfectly competitive solution ( workers are paid their marginal revenue product ) is not stable.
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