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.

---

Definitions:

Redistribution Policy

Government policies aimed at redistributing wealth and income in a society through mechanisms such as taxation, government spending, and welfare programs to reduce economic inequalities.

Nineteenth Century

The period extending from the year 1801 to 1900 in the Gregorian calendar.

Religious Organizations

Religious organizations are groups formed around shared beliefs and practices pertaining to spirituality or faith, often involved in worship, moral guidance, community service, and cultural preservation.

Federal Reserve Board

A board of governors overseeing the Federal Reserve System, the central banking system of the United States, responsible for setting national monetary policy.