Suppose a monopolist's costs and revenues are as follows: ATC = $50.00; MC = $45.00; MR = $40.00; P = $55.00. 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. If Barylia does not engage in international trade, what is the production of calculators in the country?
A) 10 units B) 20 units C) 40 units D) 60 units
Substitution effects help explain the slope of the aggregate demand curve. One substitution effect refers to the
A) inverse relationship between the interest rate and the price level. B) direct relationship between the interest rate and the real value of wealth. C) effect on investment expenditures that result from a change in interest rates produced by a change in the price level. D) change in wealth that results from a change in the interest rate.
Economists use models to:
a. abstract from the complexities of the world. b. understand economic behavior. c. explain and help predict human behavior. d. do all of these.
At the beginning of 2006 the CPI was 216.2. At the beginning of 2007, it was 225.1. What was the rate of inflation in 2006?
A. 4.1 percent. B. 8.9 percent. C. 3.6 percent. D. 4.9 percent.