Under Which of the Following Situations Would a Monopolist Increase

question 45

Multiple Choice

Under which of the following situations would a monopolist increase profits by lowering price (and increasing output) ?

• A) if it discovered that it was producing where MC = MR
• B) if it discovered that it was producing where its MC curve intersects its demand curve
• C) if it discovered that it was producing where MC < MR
• D) under none of these circumstances because a monopolist would never lower price

---

Definitions:

Ending Inventory

The final value of goods available for sale at the end of an accounting period.

Net Income

The amount of earnings left over after all expenses, including taxes and costs, have been deducted from total revenue; essentially, the company's profit.

Physical Count

An actual count of merchandise or inventory on hand, often conducted at the end of an accounting period to verify the accuracy of records.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.