If, at an Output of 10 Units, a Monopoly Is

question 85

Multiple Choice

If, at an output of 10 units, a monopoly is earning a positive profit (marginal revenue is $6 and marginal cost is $4) , then the monopoly

• A)should raise the price at the current output level.
• B)should reduce output.
• C)is in equilibrium.
• D)should increase output.
• E)should reduce output before increasing it.

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Definitions:

Conformity

The altering of your own behaviors and opinions to match those of other people or to match other people’s expectations.

Compliance

The tendency to agree to do things requested by others.

Obedience

The act of following the directions or commands of an authority figure.

Bystander Intervention Effect

The failure to offer help to people in need.