If a Monopolist Finds That Her Marginal Revenue Exceeds Her

question 158

Multiple Choice

If a monopolist finds that her marginal revenue exceeds her marginal cost at the current level of output,she should

• A) do nothing;she has maximized profits.
• B) reduce production until the difference between marginal revenue and marginal cost is larger.
• C) increase output until marginal revenue equals marginal cost.
• D) increase output until price equals marginal cost.
• E) raise her price.

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Definitions:

Pediatrician

A medical doctor specializing in the care and treatment of children and adolescents, addressing their physical, behavioral, and mental health issues.

Developmental Milestone

Specific skills or abilities that most children exhibit at a certain age range, marking significant progress in physical, emotional, or intellectual development.

Lifting Head

An early developmental milestone in infants, indicating neck and upper body strength, where the infant is able to lift and hold up their head independently.

Rolling Over

A developmental milestone where an infant learns to turn over from the back to the stomach or vice versa, usually occurring around 4 to 6 months of age.