Suppose that a monopoly is currently producing the quantity at which marginal revenue is less than marginal cost. The monopoly can increase its profit by ________
A) shutting down
B) lowering its price and increasing its output
C) raising its price and decreasing its output
D) lowering its price and decreasing its output
C
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Refer to the diagram above, which represents a country's supply and demand for an internationally traded good
If PW is the world price, and a foreign country engages in dumping by selling at P1, the country's producer surplus will ________ by ________. A) increase; abcd B) decrease; abcd C) increase; bcd D) decrease; a
If both imports and exports rose, a. AD would decrease
b. AD would increase. c. AD would decrease if exports rose more than imports. d. AD would increase if exports rose more than imports.
A U.S. computer manufacturing company seeking to expand its operations to a lesser- developed country can expect
a. socioeconomic issues to be unimportant b. cost structures to be different c. to easily apply the same technologies as in the United States d. labor skills to be similar e. the same infrastructure as in the United States
In a market system, the costs associated with exchanging goods are known as
A) voluntary costs. B) signaling costs. C) implicit costs. D) transaction costs.