1) If a monopolist is producing a quantity where marginal revenue is equal to $700 and the marginal cost is equal to $700, the monopolist should ________ to maximize profits. pickoneoption: a.decrease production and increase the price b. decrease production and decrease the price c. continue producing at the current price d. increase production and lower the price e. increase production and increase the price 2) In the long run, monopolistically competitive firms like fast-food restaurants operate at a price that pick one: a) drives economic profit to zero b. equals to the average variable cost. c. equals to the minimum average total cost. d. allows them to make a small economic profit. e. equals to the marginal cost.
1) If a monopolist is producing a quantity where marginal revenue is equal to $700 and the marginal cost is equal to $700, the monopolist should ________ to maximize profits. pickoneoption: a.decrease production and increase the price b. decrease production and decrease the price c. continue producing at the current price d. increase production and lower the price e. increase production and increase the price 2) In the long run, monopolistically competitive firms like fast-food restaurants operate at a price that pick one: a) drives economic profit to zero b. equals to the average variable cost. c. equals to the minimum average total cost. d. allows them to make a small economic profit. e. equals to the marginal cost.
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.1P
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Question
1)
If a monopolist is producing a quantity where marginal revenue is equal to $700 and the marginal cost is equal to $700, the monopolist should ________ to maximize profits.
pickoneoption:
a.decrease production and increase the price
b. decrease production and decrease the price
c. continue producing at the current price
d. increase production and lower the price
e. increase production and increase the price
2)
In the long run,
pick one:
a) drives economic profit to zero
b. equals to the average variable cost .
c. equals to the minimum average total cost.
d. allows them to make a small economic profit.
e. equals to the marginal cost.
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