When the Marginal Cost Curve of the Monopolist Shifts Upward

question 91

Multiple Choice

When the marginal cost curve of the monopolist shifts upward, there will be

• A) an increase in both price and quantity.
• B) an increase in price but a decrease in quantity.
• C) a decrease in price and in marginal revenue.
• D) a decrease in quantity and a decrease in marginal revenue.

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Definitions:

Standby Equipment

Equipment that is kept on hand and ready to be used as a backup in case primary equipment fails.

Property, Plant, Equipment

Long-term tangible assets used in the operation of a business that are expected to provide benefits for more than one year.

Intangible Assets

Non-physical assets owned by a business, such as patents, copyrights, trademarks, and goodwill, that provide economic benefits.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted into cash in the short term, such as buildings, machinery, and vehicles.