Suppose That a Single-Price Monopolist Calculates That at Its Present

question 40

Multiple Choice

Suppose that a single-price monopolist calculates that at its present output,marginal revenue is $2 and marginal cost is $1.If the price of the product is $3,the monopolist could maximize its profits by

• A)lowering price and raising output.
• B)lowering price and leaving output unchanged.
• C)raising price and leaving output unchanged.
• D)doing nothing.
• E)shutting down.

---

Definitions:

Alkaline

Having a pH greater than 7, indicating a base where concentration of hydroxide ions is greater than that of hydrogen ions.

Blood

A body fluid in humans and other animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away.

pH

A scale measuring the acidity or alkalinity of a solution, where 7 is neutral, values below 7 are acidic, and values above 7 are alkaline.

Buffers

Substances that minimize changes in the pH of a solution by absorbing or releasing hydrogen ions.