If a Monopolist's Price Is $50 Per Unit and Its

question 184

Multiple Choice

If a monopolist's price is $50 per unit and its marginal cost is $25, then

• A)to maximise profit the firm should increase output.
• B)to maximise profit the firm should decrease output.
• C)to maximise profit the firm should continue to produce the output it is producing.
• D)Not enough information is given to say what the firm should do to maximise profit.

---

Definitions:

Portfolio Standard Deviation

A measure of the dispersion or variability of returns in an investment portfolio, indicating the risk level of the portfolio.

Cyclical Stock

Stocks whose performance is tightly tied to the economic cycle, rising with economic growth and falling with contraction.

Countercyclical Stock

A stock whose price tends to move in opposition to the overall business cycle, performing well during economic downturns.

Standard Deviation

A measure of the dispersion or variability of a set of data points relative to their mean, used to gauge the amount of variation or spread in a distribution.