Suppose That a Monopolist Calculates That at Present Output and Sales,marginal

question 13

Multiple Choice

Suppose that a monopolist calculates that at present output and sales,marginal cost is $1.00 and marginal revenue is $2.00.He could maximize profits by:

• A) decreasing price and increasing output.
• B) increasing price and decreasing output.
• C) decreasing price and leaving output unchanged.
• D) decreasing output and leaving prices unchanged.

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Definitions:

Autonomy

the capacity to make an informed, uncoerced decision; often referring to one's independence or self-governance.

Relatedness

The need to feel connected and involved with others; it's a fundamental psychological component of human motivation according to some theories.

Self-determination Theory

A theory of motivation that suggests people are most motivated when they feel autonomous, competent, and related to others.

Human Agency

The capacity of individuals to act independently and make their own free choices.