A single-price monopoly is producing at an output level where marginal revenue is $15, marginal cost is $13, and price is $20. This monopoly is
A) not maximizing its profit and should decrease output to increase its profit.
B) not maximizing its profit and should increase output to increase its profit.
C) maximizing its profit but should shut down.
D) maximizing its profit and should not shut down.
E) maximizing its profit but still should decrease output to earn even more profit.
B
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All inferior goods have upward-sloping demand curves.
Answer the following statement true (T) or false (F)
The Board of Governors is the
A) Presidents of the 12 regional banks of the Federal Reserve. B) 7-member group that oversees the Federal Reserve. C) 12-member monetary policy committee of the Federal Reserve. D) 50-member organization of state banking regulators of the Federal Reserve.
People hold money as opposed to financial assets because money
A) earns interest. B) earns no interest. C) is perfectly liquid. D) earns a higher return than other financial assets.
If both market demand and supply increase simultaneously by the same magnitudes, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. Not change; decrease b. increase; increase c. increase; not change d. None of the above are correct