An Increase in Demand for a Monopolist Will Cause The

question 14

Multiple Choice

An increase in demand for a monopolist will cause the:

• A)profit-maximizing price to decrease when marginal cost decreases as quantity increases.
• B)profit-maximizing price to increase when marginal cost decreases as quantity increases.
• C)profit-maximizing price to decrease when marginal cost increases as quantity increases.
• D)profit-maximizing price to stay constant regardless of the shape of the marginal cost curve.