Suppose a Monopolist Faces the Demand Curve and Cost Curves

question 60

Multiple Choice

Suppose a monopolist faces the demand curve and cost curves shown below. FIGURE 10-5
-Refer to Figure 10-5.Suppose this firm experiences an increase in the demand for its product.In the short run,this profit-maximizing monopolist will

• A)increase price and output.
• B)increase price and produce the same output.
• C)increase price and reduce output.
• D)neither raise price nor change output.
• E)lower price and increase output.

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