A monopolist is producing at an output level at which MR = $10 and MC = $9. It could increase profits
A. by reducing both output and price.
B. by increasing both output and price.
C. by reducing output and by increasing price.
D. by increasing output and by reducing price.
Answer: D
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Refer to the table below. If this market is a Cournot Oligopoly and Firm X is produces 50 units, what is Firm Y's demand at a price of $70?
The table above shows the market demand for a product that both Firm X and Firm Y manufacture. Both firms produce an identical product and the firms' average total and marginal cost are equal and constant.
A) 50
B) 0
C) 100
D) 150
Refer to the figure above. What is the equilibrium wage rate and equilibrium level of employment?
A) $35 and 10 units of labor B) $20 and 15 units of labor C) $15 and 35 units of labor D) $25 and 20 units of labor
For a ____, if incomes rise and prices do not change, quantity demanded will increase.
A. normal good B. inferior good C. Giffen good D. substitute good
From uncovered interest parity, we know that when the domestic currency is expected to depreciate, the domestic interest rate should be
A) greater than the foreign interest rate B) greater than the foreign return C) less than the foreign interest rate D) less than the foriegn return