If a monopoly is producing an amount of output level at which marginal revenue exceeds marginal cost, in order to increase its profit the monopoly will ________ its price and ________ its output
A) raise; decrease
B) lower; increase
C) lower; decrease
D) raise; increase
B
You might also like to view...
If the exchange rate is above equilibrium, there will be ________ in the foreign exchange market
A) a surplus B) a shortage C) a decrease in the demand for domestic currency D) an increase in the demand for domestic currency
What limits the quantity of money that the banking system can create?
What will be an ideal response?
Which curve is analogous to the monopsonist's demand curve?
A) ME B) AE C) MV D) MC
In a competitive market the current price is $5 . The typical firm in the market has ATC = $5.50 and AVC = $4.50
a. In the short run firms will shut down, and in the long run firms will leave the market. b. In the short run firms will continue to operate, but in the long run firms will leave the market. c. New firms will likely enter this market to capture any remaining economic profits. d. The firm will earn zero profits in both the short run and long run.