Suppose That for a Monopoly Average Total Cost Is $3

question 42

Multiple Choice

Suppose that for a monopoly average total cost is $3.50, marginal cost is $3.00, and marginal revenue is $3.00 with a selling price of $4.00. To maximize profits, the monopoly should

• A)change neither price nor output.
• B)increase both output and price.
• C)decrease both output and price.
• D)increase output but decrease price.
• E)decrease output but increase price.

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Definitions:

International Unions

Organizations that represent workers' interests across multiple countries.

National Unions

Labor organizations that represent workers from across the country in a specific trade or profession.

Highly Unionized

Describes sectors or organizations with a substantial proportion of workers who are members of labor unions.

Public Administration

The implementation of government policies and an academic discipline that studies this implementation and prepares civil servants for working in the public service.