Suppose That a Profit-Maximizing Monopoly Firm Undergoes a Substantial Technological

question 31

Multiple Choice

Suppose that a profit-maximizing monopoly firm undergoes a substantial technological change that reduces its marginal and average total costs by $40.If in response to its reduction in cost the firm changes its price in a profit-maximizing way,then we can predict that its total economic profit will:

• A)fall.
• B)remain unchanged.
• C)rise.
• D)It is not possible to make a determination from the information given.

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Definitions:

Disgust

An emotional response of revulsion towards something considered offensive, distasteful, or unpleasant.

Superego

In Freudian psychoanalysis, a component of the psyche that operates as the ethical component of personality, providing moral standards and aspirations.

Collective Unconscious

A concept proposed by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.

Ego

The part of the psyche that mediates between the conscious, the unconscious, and the external world, according to Freudian psychology.