Suppose a Monopolist Is Currently Producing at a Point Where

question 24

Multiple Choice

Suppose a monopolist is currently producing at a point where marginal revenue is $25 and marginal cost is $18. This monopolist should:

• A) decrease output in order to increase profits.
• B) increase output in order to increase profits.
• C) advertise more to encourage consumers to buy more of the product.
• D) cease production to cut its losses.

---

Definitions:

Nucleus

The membrane-bound organelle in eukaryotic cells that contains the genetic material.

Endoplasmic Reticulum

An organelle in eukaryotic cells comprising a network of membranous tubules and sacs, involved in protein and lipid synthesis.

Lactose

A type of sugar found in milk and dairy products, composed of glucose and galactose units.

E. Coli

Escherichia coli, a rod-shaped bacterium that is commonly found in the intestines of warm-blooded organisms and can be either harmless or pathogenic.