Refer to Figure 15-5. If the monopolist charges price P* for output Q*, in order to maximize profit or minimize loss in the short run, it should
A) continue to produce because price is greater than average variable cost.
B) shut down because price is greater than marginal cost.
C) continue to produce because a monopolist always earns a profit.
D) shut down because price is less than average total cost.
A
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Refer to Table 21.1. What is the mean income on Richlandia?
A) $40,000 B) $69,000 C) $75,000 D) $85,000
Refer to the scenario above. What is the sum of the payoffs to the firms if both firms use Strategy A?
A) 1 B) -2 C) 2 D) 0
If Tucker National Bank has $10,000 in excess reserves that it cannot lend:
A. the money multiplier increases. B. the money multiplier decreases. C. the money multiplier stays the same. D. checkable deposits increase.
Which of the following is correct?
A. MPC + MPS = APC + APS. B. APC + MPS = APS + MPC. C. APC + MPC = APS + MPS. D. APC - APS = MPC - MPS.