If a monopolist is producing a level of output where MR exceeds MC, then it should
A. Lower its output.
B. Increase its output.
C. Raise its price.
D. Shift its marginal cost curve upward.
Answer: B
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Answer the following statement(s) true (T) or false (F)
1. If a firms fixed costs increase from $2,000 to $3,000, then its marginal cost is $1,000. 2. If a firm can sell one more unit of its product for $7 and the marginal cost of producing that one more unit is only $5, then it should definitely produce and sell one more unit.
If a tax is imposed on each unit of a good purchased, ________
A) the supply curve shifts to the right B) the supply curve shifts to the left C) the demand curve shifts to the right D) the demand curve shifts to the left
The regional Federal Reserve bank presidents are:
A. are responsible for regulatory oversight and implementation of monetary policy of regional banks. B. allowed to serve no more than two consecutive four-year terms. C. directly affiliated with other governmental agencies. D. selected by the Federal Reserve Board of Directors.
Which of the following statements about the burden of a carbon tax is true?
A. A carbon tax is proportional, placing about the same burden on high- and low-income households. B. A carbon tax is regressive, placing a relatively heavy burden on poor households. C. A carbon tax is progressive, placing a relatively heavy burden on high-income households. D. The burden of a carbon tax would fall entirely on fossil fuel-burning energy producers and their stockholders, employees, and suppliers, and would not affect consumers.