If a Profit-Maximizing Monopolist Finds That Marginal Cost Is Increasing

question 143

Multiple Choice

If a profit-maximizing monopolist finds that marginal cost is increasing and exceeds marginal revenue, what action should it take?

• A) Increase price and decrease output.
• B) Increase both price and output.
• C) Increase output and decrease price.
• D) Decrease both price and output.

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Definitions:

Group Polarization

A group member’s adoption of a more extreme position about an issue than she or he originally held after participating in a discussion in which other group members strongly express agreement with her or him.

Social Roles

The patterns of behavior expected of individuals in different social positions or statuses within a group or society.

Social Customs

Established patterns of behavior and traditions that are socially accepted within a specific culture or society.

Social Occupations

Jobs or careers focused on providing social services to individuals or communities, often involving counseling, social work, or community organization.