When a Monopoly Changes Price to Respond to a Change

question 154

Multiple Choice

When a monopoly changes price to respond to a change in marginal cost, the _______ in _______ is _______ than the _______ .

• A) change; price; less; the change in marginal cost
• B) increase; price; greater; change in output
• C) decrease; output; greater; change in output
• D) change; price; equal to; change in marginal cost

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Definitions:

Standard Deviation

A gauge for the degree of spread or variability among figures in a collection.

Mean

A statistical measure representing the average value of a set of numbers.

Percentile

A statistical measure indicating the value below which a given percentage of observations in a group of observations fall.

Percentile

A measure indicating the value below which a given percentage of observations in a group of observations fall.