A Decrease in the Fixed Costs of a Monopoly Firm

question 43

Multiple Choice

A decrease in the fixed costs of a monopoly firm would _______ quantity and _______ price.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) not change; not change

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Definitions:

Inventory Control

Management of inventory levels, orders, sales, and deliveries to ensure availability of goods without excessive supply.

Financial Problems

Difficulties in managing money, which may include maintaining cash flow, handling debt, or managing investments.

Management Function

The activities and responsibilities of managing an organization, including planning, organizing, leading, and controlling.

Henri Fayol

A French mining engineer and management theorist hailed as a founding father of modern management methods, especially for his principles of administrative management.