A Monopolist Is Producing a Level of Output at Which

question 18

Multiple Choice

A monopolist is producing a level of output at which price is $65,marginal revenue is $35,average total cost is $35,and marginal cost is $50.In order to maximize profit,the firm should

• A)keep output the same.
• B)produce less.
• C)produce more.
• D)decrease price.
• E)both c and d

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Definitions:

Blocking

A technique used in experimental design to group experimental units with similar characteristics together, in order to reduce the variability caused by these characteristics.

Random Assignment

The process of allocating subjects or experimental units to different groups in an experiment using random methods, to ensure that each group is similar at the start.

Double Blind

A study or experiment design in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.

Stratifying

The process of dividing a population or sample into subgroups, known as strata, to ensure that research or analysis is more accurate and reflective of the whole.