FIGURE 10- 4 Suppose a Monopolist Faces the Demand Curve

question 13

Multiple Choice

FIGURE 10- 4 Suppose a monopolist faces the demand curve and cost curves shown below.

-Refer to Figure 10- 4.Suppose this firm experiences an increase in the demand for its product.In the short run,this profit- maximizing monopolist will

• A)lower price and increase output.
• B)increase price and output.
• C)neither raise price nor change output.
• D)increase price and produce the same output.
• E)increase price and reduce output.

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Definitions:

Financial Responsibility

Obligation to manage financial resources wisely and fulfill monetary commitments.

Consumer Goods

Products and services that are bought for personal use by individuals.

Real Property

Land and everything attached to it, such as trees and buildings.

Definite Period

A specified duration of time with clearly defined start and end points.