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:

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together. A positive correlation indicates that as one variable increases, the other does too, and vice versa for a negative correlation.

Correlation Coefficients

Statistical measures that quantify the degree to which two variables are related, indicating the strength and direction of a relationship.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.

Illusory Correlation

The perception of a relationship between two variables when no such relationship exists or the perception is stronger than the actual relationship.