If the Marginal Cost of the 1000^th Unit Produced by a Monopolist

question 87

Multiple Choice

If the marginal cost of the 1000^th unit produced by a monopolist is $16 and its marginal revenue is $20,what should the monopolist do?

• A)Produce more until the marginal profit becomes zero.
• B)Produce less since the costs will be less and therefore the profit will be greater.
• C)Produce less since it will be able to sell them at a higher price and therefore obtain greater profits.
• D)Produce more until the marginal revenue becomes zero.

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Definitions:

Global Mind-Set

An approach that considers the full spectrum of cultural, economic, and geopolitical factors when making business decisions on a global scale.

Market Savvy

A leader’s ability to be accountable for the products and services they deliver in a local market.