BrainMass Quizzes Pricing Strategies Discussion about various pricing techniques of profit-seeking firms. 1 Profit-maximizing output occurs when Marginal cost equals marginal revenue marginal revenue is zero average cost is minimum 2 Under perfect competition, in a graph, the marginal revenue is a downward-sloping line equals price is a horizontal line is vertical answers b and c 3 In most cases, the profit-maximizing price occurs in the inelastic portion of the demand below the mid-point of the demand curve in the elastic portion of the demand line 4 When total revenue is maximum elasticity is unitary price is at the mid-point of the demand line marginal revenue equals zero all of the above none of the above 5 In the long run, perfectly -competitive firms earn abnormal economic profits earn normal profits earn zero economic profits none of the above answers a, b and c Submit Quiz
