Suppose That a Single- Price Monopolist Calculates That at Its

question 19

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

---

Definitions:

Taxonomies

Systematic classifications or arrangements of various entities into ordered categories according to shared characteristics.

Divergent

Tending to be different or develop in different directions.

Blake and Mouton

Creators of the Managerial Grid Model, which identifies five different leadership styles based on the concern for people and the concern for production.

Effective Leaders

Individuals who can inspire, motivate, and guide others towards achieving collective goals and objectives through adept decision-making and strategic thinking.