In the Short Run, How Will a Profit-Maximizing Monopolist React

question 84

Multiple Choice

In the short run, how will a profit-maximizing monopolist react if its marginal cost suddenly increases? It will

• A)lower price to expand revenue possibilities
• B)restrict output to extract a higher price from customers
• C)maintain the current price if profit is still positive
• D)increase plant size to lower marginal cost
• E)decrease plant size to lower marginal cost

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