Refer to the Graph Shown

question 196

Multiple Choice

Refer to the graph shown. At an output of a, the monopolist should:

• A)not change output since profits are maximized.
• B)reduce output to increase profits.
• C)increase output to increase profits.
• D)increase price to increase profits.

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Definitions:

Trade Surplus

Occurs when the value of a country's exports exceeds the value of its imports.

U.S. Dollar

The official money of the United States, commonly utilized as a standard and reserve financial instrument globally.

Imports

refer to goods or services purchased from other countries, which are brought into a country to meet domestic demand or for further processing.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a nation's gross domestic product.