If Marginal Costs Decrease and the MC Curve Shifts Down

question 302

Multiple Choice

If marginal costs decrease and the MC curve shifts down, a typical monopolist will

• A)reduce price and reduce quantity of output.
• B)reduce price and increase quantity of output.
• C)increase price and reduce quantity of output.
• D)increase price and increase quantity of output.

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Definitions:

Preoperational Stage

The second stage in Piaget's theory of cognitive development, where children aged 2-7 years begin to think symbolically but are not yet able to perform operations, or reversible mental actions.

Understanding

The ability to grasp the meaning, significance, or nature of something, often involving comprehension of concepts and relationships.

Sisters

Female siblings who share one or both parents in common.

Sensorimotor Stage

The first stage of Piaget’s theory of cognitive development, where infants learn about the world primarily through their sensory impressions and motor activities.