What Should a Profit Maximizing Monopolist Do If She Is

question 228

Multiple Choice

What should a profit maximizing monopolist do if she is currently producing where MC < MR?

• A) Increase output until MC = MR.
• B) Decrease output until MC = MR.
• C) Shut down in the long run.
• D) Keep producing at this level.
• E) Operate only in the short run.

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Liability

A financial obligation or debt owed by a business to an external entity that must be repaid.

Accounts Payable

A current liability account that represents amounts owed by a business to creditors for purchases or services received.

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Accounts Receivable

Debts owed by customers to a business for goods or services already provided but unpaid.