Under Which of the Following Conditions Would a Profit-Maximizing Monopolist

question 39

Multiple Choice

Under which of the following conditions would a profit-maximizing monopolist necessarily raise price?

• A) if product demand was price-elastic
• B) if marginal revenue is positive
• C) if marginal revenue was greater than marginal cost
• D) if marginal cost was greater than marginal revenue

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Definitions:

Public Good

A public good is a good that is non-excludable and non-rivalrous, meaning it can be used by everyone freely without depleting its availability to others.

Nonrivalry

A characteristic of certain goods where the consumption by one individual does not reduce availability to others, often seen in digital or public goods.

Nonexcludability

A characteristic of certain goods where it is difficult or impossible to prevent someone from using the good once it has been provided.

Optimal Quantity

The amount of a good or service that yields the maximum benefit or utility to the consumer or producer.