A monopolist wishing to increase its profit has just discovered that lowering its price and selling more output yielded the desired result. Profit increased. Based on this, we can conclude that the cost of the additional production is
A) greater than the revenue from the additional production.
B) precisely equal to the revenue from the additional production.
C) less than the revenue from the additional production.
D) there is no way to answer this because you have not given us the marginal revenue and marginal cost data.
C
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A monopolist faces a market demand curve with a constant elasticity of -2. The monopoly's production function is Q = 4L and its output price is given by p. What is the monopoly's marginal revenue product of labor function?
A) MRPL = 2p B) MRPL = 4p C) MRPL = 10 - 2p D) MRPL = 5 + 3.5p
Sports announcers often refer to a baseball batter in a hitting slump as "being due." If they are correct, then it must be the case that
A) a batter's hits are randomly distributed. B) a batter's at-bats are related to each other. C) a batter's at-bats are independent of each other. D) baseball players are acting irrationally.
Typically, division of labor and specialization result in
a. increases in labor productivity b. decreases in the marginal physical product of labor c. decreases in the marginal revenue product of labor d. decreases in the total output produced by labor e. decreases in efficiency because workers are laid off
Which of the following scenarios is consistent with typical estimates of the sacrifice ratio?
a. Inflation is reduced from 4 percent to 1 percent, and annual output falls by 10 percent. b. Inflation is reduced from 6 percent to 4 percent, and annual output falls by 10 percent. c. Inflation is reduced from 8 percent to 5 percent, and annual output falls by 9 percent. d. Inflation is reduced from 3 percent to 2 percent, and annual output falls by 3 percent.