If a Monopolist Is Producing a Quantity Where Marginal Revenue

question 171

Multiple Choice

If a monopolist is producing a quantity where marginal revenue is equal to $32 and the marginal cost is equal to $30,the monopolist should ________ to maximize profits.

• A) increase production and lower the price
• B) decrease production and increase the price
• C) continue producing at the current price
• D) increase production and increase the price
• E) decrease production and decrease the price

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Definitions:

Well-Learned

The state of having thoroughly practiced or mastered a skill, knowledge, or task through repetition.

Automatic Skills

Skills that are performed with little conscious thought, often developed through repeated practice and learning.

Two-Track Mind

The concept of the mind simultaneously processing information on two different levels; conscious and unconscious.

Implicit Memory

Memory that influences thoughts and behaviors without conscious awareness, such as skills or habits.