If the Variable Costs of a Profit-Maximizing Pure Monopolist Decline

question 39

Multiple Choice

If the variable costs of a profit-maximizing pure monopolist decline, the firm should

• A)produce more output and charge a higher price.
• B)produce more output and charge a lower price.
• C)reduce both output and price.
• D)raise both output and price.

---

Definitions:

Cognitive Processes

Mental actions or operations that include thinking, reasoning, problem-solving, decision-making, and memory.

Equilibrium

A state of balance or stability arising from the equal action of opposing forces.

Self-reinforcement

Administering rewards or punishments to oneself for meeting, exceeding, or falling short of one’s own expectations or standards.

Conscience

An inner feeling or voice viewed as a guide to the rightness or wrongness of one's behavior.