Suppose a monopolist's costs and revenues are as follows: ATC = $50; MC = $40; MR = $45; P = $55. The firm should
A) increase output and decrease price.
B) decrease output and increase price.
C) not change output or price.
D) shut down.
Answer: A
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Residential construction (new houses and apartments) are included in which component of GDP?
A. Government purchases B. Retail spending C. Investment spending D. Net exports
Suppose when a monopolist produces 50 units its average revenue is $8 per unit, its marginal revenue is $4 per unit, its marginal cost is $4 per unit, and its average total cost is $3 per unit. What can we conclude about this monopolist?
a. The monopolist is currently maximizing profits, and its total profits are $200. b. The monopolist is currently maximizing profits, and its total profits are $250. c. The monopolist is not currently maximizing its profits; it should produce more units and charge a lower price to maximize profit. d. The monopolist is not currently maximizing its profits; it should produce fewer units and charger a higher price to maximize profit.
The rule of 70 can be stated as follows: A variable with a growth rate of X percent per year
a. doubles every 70/X years. b. doubles every 70(1 - 1/X) years. c. doubles every 70/X2 years. d. doubles every 70/(1 - X) years.
When Delta decides to quit flying to Lithuania, it directly answers the ________ question
A) what B) why C) for whom D) how E) when