If a monopoly discovers that the demand for its output has become more elastic at the original output level, then it will respond by

A) producing more and setting a higher price.
B) setting a lower price.
C) setting a higher price.
D) producing more while leaving price unchanged.


B

Economics

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If the demand curve facing a monopolist shifts, then the monopolist's:

A. total cost curve will change, but its variable cost curve will not. B. marginal revenue curve and profit-maximizing level of output will change. C. marginal revenue curve will not change, but its profit-maximizing level of output will. D. marginal revenue curve will change, but its profit-maximizing level of output will not.

Economics

From the table below, choose the optimum option using marginal analysis

Option Total Cost ($) 1 150 2 100 3 80 4 70 5 90 6 120 What will be an ideal response?

Economics

In a market economy, the decision regarding allocation of resources is made by

a. automatic forces of supply and demand. b. authorities in Washington, D.C. c. planners in state capitals. d. committees from a variety of economic interest groups. e. All of the above are correct.

Economics

Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.

A. lower; potential B. higher; potential C. higher; higher D. lower; higher

Economics