If a Monopolist's Marginal Revenue Is $25 a Unit and Its

question 125

Multiple Choice

If a monopolist's marginal revenue is $25 a unit and its marginal cost is $25, then

• A)to maximize profit the firm should increase output.
• B)to maximize profit the firm should decrease output.
• C)to maximize profit the firm should continue to produce the output it is producing.
• D)Not enough information is given to say what the firm should do to maximize profit.

---

Definitions:

Entrepreneurial Culture

An organizational environment that fosters innovation, risk-taking, and the proactive pursuit of new business opportunities.

Individual Initiative

The capacity and willingness of an individual to take action and make decisions independently, often driving innovation and change.

Entrepreneurial Culture

A corporate environment that values innovation, risk-taking, and the pursuit of new business opportunities.

Risk Taking

The act of engaging in actions or decisions that involve a degree of uncertainty or danger with the hope of achieving a positive outcome.