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Home / Questions / A monopolist is producing at an output level at which MR = $6 and MC = $9. It could increa

A monopolist is producing at an output level at which MR = $6 and MC = $9. It could increa

A monopolist is producing at an output level at which MR = $6 and MC = $9. It could increase profits

A) by increasing both output and price.

B) by reducing output and by increasing price.

C) by reducing both output and price.

D) by increasing output and by reducing price.

65) A monopolist is producing at an output level at which MR = $9 and MC = $8. It could increase profits

A) by increasing both output and price.

B) by reducing output and by increasing price.

C) by reducing both output and price.

D) by increasing output and by reducing price.

66) A monopolist is producing at an output level at which ATC = $5, P = $6, MC = $3, and MR = $4. We can conclude that

A) economic profit could be increased by producing more.

B) economic profit could be increased by producing less.

C) economic profit cannot be increased.

D) the firm is earning $10 in economic profits.

67) A monopolist is producing at an output level at which ATC = $5, P = $6, MC = $4, and MR = $3. We can conclude that

A) economic profit could be increased by producing more.

B) economic profit could be increased by producing less.

C) economic profit cannot be increased.

D) the firm is earning $10 in economic profits.

68) Assume that a monopoly is producing at a profit-maximizing output level. If the firm's total fixed costs decrease, the firm

A) should lower its price.

B) should increase its price.

C) should continue to produce at the same level.

D) increase its output level.

69) For a profit-maximizing monopolist,

A) P > MC.

B) P = MC.

C) P = MR.

D) P = ATC.

70) In the long run, all of the following are true for a monopolist EXCEPT

A) P > ATC.

B) P = MC.

C) MR = MC.

D) P > AVC.

71) Which of the following is true of a perfectly competitive firm and a monopoly in the long run?

A) P = MC

B) P = ATC

C) MR = MC

D) P = MR

72) For a monopoly earning positive economic profits at the profit-maximizing output level, all of the following are true EXCEPT

A) P > ATC.

B) P > MR.

C) P > MC.

D) P = MR.

73) If a monopolist is producing at an output rate at which P = ATC, then

A) its economic profit will be zero.

B) its economic profit will be positive.

C) it is maximizing its profits.

D) it is minimizing its losses.

Dec 10 2019 View more View Less

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