A Certain Monopolist Has a Positive Marginal Cost of Production

question 35

Multiple Choice

A certain monopolist has a positive marginal cost of production.Despite this fact, the monopolist decides to produce a quantity of output that maximizes total revenues.Assume that the marginal revenue curve for this monopolist always has a negative slope.Then the monopolist

• A)is minimizing its profits.
• B)produces the same output that it would if it maximized profits.
• C)produces less output than it would if it maximized profits.
• D)produces more output than it would if it were maximizing profits.
• E)produces an output where marginal revenue is strictly less than 1.

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Definitions:

Coordinates Staff Activities

The process of organizing, managing, and aligning the efforts of team members to achieve organizational goals efficiently.

Showrooming

The practice of visiting a store or stores in order to examine a product before buying it online at a lower price.

Best Price

The most favorable financial term offered on a product or service, often considered the lowest price offered among competitors.

Physical Store

A brick-and-mortar location where businesses sell their products or services directly to customers in person.