If a Monopolist's Price Is $50 Per Unit and Its

question 184

Multiple Choice

If a monopolist's price is $50 per unit and its marginal cost is $25, then

• A)to maximise profit the firm should increase output.
• B)to maximise profit the firm should decrease output.
• C)to maximise 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 maximise profit.

---

Definitions:

Pollution Cleanup

The removal of pollutants from the environment, including soil, water, and air, to reduce their harmful effects on human health and ecosystems.

Pollution Control Technology

Processes and equipment designed to reduce or eliminate the release of harmful substances into the environment.

Economically Depleted

pertains to a state of significant reduction in economic resources, wealth, and productivity, often leading to downturns in living standards and financial stability.

Non-renewable Resource

A non-renewable resource is a natural resource that cannot be readily replaced by natural means on a level equal to its consumption, such as oil, natural gas, and coal.