A Monopolist's Marginal Cost Curve Shifts Up, but the Firm's

question 199

Multiple Choice

A monopolist's marginal cost curve shifts up, but the firm's demand curve remains the same and the firm does not shut down. Compared to the condition before the increase in marginal costs, the monopolist will _____ its price and _____ its level of production.

• A) raise; decrease
• B) not change; decrease
• C) raise; increase
• D) lower; increase

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