If a Monopolist's Marginal Revenue Is $25 a Unit and Its

question 235

Multiple Choice

If a monopolist's marginal revenue is $25 a 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.

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Definitions:

Checking Accounts

Bank accounts on which the account holder can draw checks against the money deposited.

Time Deposits

Banking or financial accounts that hold funds for a fixed period, during which the depositor cannot access their money without incurring a penalty.

Federal Banks

Centralized banking institutions established by a country to oversee the monetary system and implement national economic policies.

State Banks

Financial institutions chartered by a state to provide banking services.