Figure 10.2 shows a monopolist's demand curve. Suppose that the marginal cost is $6 for all units and the current output level is 4 units. Then what would you recommend to the firm?
A. Lower the price to sell more units.
B. Raise the price and sell fewer units.
C. Maintain the current price and output level.
D. There is not sufficient information.
Answer: B
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If the MPC is 0.80, and if the goal is to increase real GDP by $200 million, then by how much would government spending have to change to generate this increase in real GDP?
a. $240 million. b. $200 million. c. $180 million. d. $40 million.
The 4-year term of the president of the Fed is coterminous with the 4-year term of the president of the U.S
a. True b. False
Which statement about poverty in the United States is true?
a. Most people living below the poverty line are white. b. Most people living below the poverty line are African American. c. Poverty rates are relatively low for females. d. Poverty rates are relatively low for Hispanics.
When the wages paid to government economists increase, the labor supply curve for academic economists
a. shifts to the left. b. shifts to the right. c. will become backward-sloping. d. will not change.