Suppose That a Profit-Maximizing Monopoly Firm Experiences a Substantial Technological

question 198

Multiple Choice

Suppose that a profit-maximizing monopoly firm experiences a substantial technological change that reduces its marginal and average total costs by $40.With the reduction in its costs, the firm will probably:

• A) lower its price by $40.
• B) lower its price, but by less than $40.
• C) lower its price, but by more than $40.
• D) It is not possible to make a determination from the information given.

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