A monopoly firm is charging the price the market will bear at a level of output where MC equals $22 and is increasing, MR equals $20, and average variable cost equals $17 . To maximize profits, the firm should:
a. increase both output and price
b. increase output but decrease the price.
c. decrease output and increase the price.
d. decrease both output and price.
c
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The Federal Reserve can increase the money supply by:
A. reducing reserve requirements. B. increasing the discount rate. C. conducting open market sales. D. eliminating deposit insurance.
Utilitarianism is the idea that only
A) competition brings efficiency. B) efficiency brings equality. C) income equality is fair. D) efficiency is fair.
Each of the following is a determinant of demand except
a. tastes. b. production technology. c. expectations. d. the prices of related goods.
If the price of an input increases, each individual firm's ________ shifts upward and the ________ shifts to the left.
A. supply curve; marginal cost curve B. demand curve; industry supply curve C. marginal revenue curve; marginal cost curve D. marginal cost curve; industry supply curve