In the above figure, suppose the monopolist is producing at Q3. The firm should
A) increase output and decrease price.
B) decrease output and increase price.
C) not change output or price.
D) shut down.
B
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Refer to the figure above. A change in the budget constraint from B2 to B3 indicates:
A) a decrease in the price of jeans. B) a decrease in the price of sweaters. C) an increase in the consumer's income. D) a decrease in the consumer's income.
What makes a technology "inappropriate"? Why might it be used anyway?
What will be an ideal response?
A monopsonist wants to purchase more labor. Which of the following statements is TRUE?
A) The wage rate that the monopsonist has to pay future workers is lower than it pays current workers since there is no other place to work. B) The wage rate that the monopsonist has to pay future workers will be the same rate it pays current workers. C) The wage rate that the monopsonist has to pay future workers is higher than what it will continue to pay current workers. D) The monopsonist will have to raise the wage rate for current and additional employees.
Having a well-known brand name associated with high quality is
A. is a value to consumers. B. can take a long time to establish. C. can be costly to maintain. D. All of these statements are true.