A Reduction in a Monopolist's Fixed Costs Would

question 568

Multiple Choice

A reduction in a monopolist's fixed costs would

• A)decrease the profit-maximizing price and increase the profit-maximizing quantity produced.
• B)increase the profit-maximizing price and decrease the profit-maximizing quantity produced.
• C)not effect the profit-maximizing price or quantity.
• D)possibly increase, decrease or not effect profit-maximizing price and quantity, depending on the elasticity of demand.

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