A Single- Price Monopolist Is Currently Producing an Output Level

question 96

Multiple Choice

A single- price monopolist is currently producing an output level where P = $320,MR = $200,AVC = $327,and MC = $200.In order to maximize profits,this firm should

• A)decrease production and increase prices.
• B)There is insufficient information to make a recommendation.
• C)not change its output level,because the firm is currently at its profit maximizing level.
• D)shut down.
• E)increase production and reduce prices.

---

Definitions:

Government Cost

Government cost refers to the expenses incurred by the government in the course of its operations, including public services, defense, infrastructure, and social programs.

Minimum Wage

The lowest legal salary that employers can pay workers, set by government legislation.

Semiskilled Labor

refers to work that requires some level of training or skills but is less complex and requires less education than skilled labor.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity supplied.