Suppose that a profit-maximizing monopoly firm undergoes a substantial technological change that reduces its marginal and average total costs by $40. If in response to its reduction in cost the firm changes its price in a profit-maximizing way, then we can predict that its total economic profit will:
A. rise.
B. remain unchanged.
C. It is not possible to make a determination from the information given.
D. fall.
A. rise.
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The less freedom people are given to choose the date of their retirement, the
a. more elastic is the supply of labor. b. less elastic is the supply of labor. c. flatter is the labor supply curve. d. smaller is the decrease in employment that will result from a tax on labor.
Round-trip airline tickets are usually cheaper if you stay over a Saturday night before you fly back. What is the reason for this price discrepancy?
a. Airlines are practicing imperfect price discrimination to raise their profits. b. Airlines charge a different rate based on the different nature of peoples' travel needs. c. Airlines are attempting to charge people based on their willingness to pay. d. All of the above are correct.
Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?
Your comparative advantage in a specific area is determined by
What will be an ideal response?