If a Monopolist's Marginal Cost Is Zero,in Order to Maximize

question 82

Multiple Choice

If a monopolist's marginal cost is zero,in order to maximize profit the monopolist will:

• A)set a price where demand is unit elastic.
• B)produce where demand is elastic.
• C)expand output to the limit of its physical capacity.
• D)not impose an efficiency loss on the society,since P=MC.

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Definitions:

Specialization

The process of focusing one's skills or resources on a specific field or area of expertise, leading to increased efficiency and knowledge.

Formalized

The process of establishing certain procedures or behaviors in a structured and officially sanctioned manner.

Span Of Control

The number of subordinates that a manager or leader can directly manage effectively.

Hierarchical

Organized in a way that groups or ranks people, tasks, or organizations in levels of importance or authority from the highest to the lowest.