At a Price of $8, the Marginal Revenue of a Monopolistically

question 288

Multiple Choice

At a price of $8, the marginal revenue of a monopolistically competitive firm is $5. If the marginal cost is $7 and average total cost is $4, what should the firm do to maximize profits?

• A) reduce output and increase price
• B) increase output and decrease price
• C) reduce both output and price
• D) increase both output and price

---

Definitions:

LOWER

In the context of text manipulation, a function or method used to convert all characters in a string to lowercase.

Summarize

To condense or provide an overview of the main points of a larger set of information without going into detail.

Worksheets

Individual pages within an Excel file where users can store and manipulate data in rows and columns.

Error Checking

A feature or tool in software applications that scans for mistakes or inconsistencies in data or code and alerts the user to potential errors.