When the Demand for a Monopolist's Output Falls,the Monopolist Will

question 30

Multiple Choice

When the demand for a monopolist's output falls,the monopolist will

• A)not change the price,since it has no competition.
• B)raise the price in order to compensate for the lower demand.
• C)charge a lower price.
• D)cut its costs in order to maintain its profit margin.

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Definitions:

Expenses Incurred

Costs that a company has become legally obligated to pay, often in the course of its normal business operations.

Capital

Financial assets or the financial value of assets, such as cash and securities, owned by an individual or organization, especially those used to start or operate a business.

Market Value

The current quoted price at which an asset or service can be bought or sold in a public marketplace.

Economic Condition

Refers to the current state of the economy in a particular area or globally, often evaluated based on factors like GDP, employment rates, and inflation.