If a Single- Price Monopoly Is Presently Producing an Output

question 45

Multiple Choice

If a single- price monopoly is presently producing an output at which marginal revenue is less than marginal cost, it can increase its profits by

• A) expanding output and lowering price.
• B) reducing output and holding prices unchanged.
• C) expanding output and raising price.
• D) reducing output and raising prices.
• E) reducing barriers to entry.

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Definitions:

Percents

A mathematical representation of a fraction of 100, used to describe proportions or rates.

Decimals

Numbers expressed using a decimal system, involving a point to separate the whole number from the fractional part.

Mixed/Whole Numbers

Numbers that consist of both an integer and a fraction part.

Percents

A mathematical term denoting fractions of a hundred, used to describe proportions, interest rates, and changes in values.