A Monopoly Responds to an Increase in Marginal Cost by _______

question 82

Multiple Choice

A monopoly responds to an increase in marginal cost by _______ price and _______ output.

• A) increasing; decreasing
• B) increasing; increasing
• C) decreasing; increasing
• D) decreasing; decreasing

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Definitions:

Yield

Yield is the income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.

Dividend Growth Rate

The annual percentage rate at which a company's dividend payments to shareholders increase.

Required Return

The minimum rate of return an investor expects to achieve from an investment to compensate for its risk.

Dividend Yield

A benchmark in finance that compares the annual dividend output of a company with its stock price.