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

question 96

Multiple Choice

If a monopolist's marginal revenue is $25 a unit and its marginal cost is $25,then to maximise profit

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

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Definitions:

Cultural Learning

The process by which individuals acquire the values, norms, behaviors, and social skills appropriate to their culture.

Induction

A method of childrearing in which the parent appeals to the child’s own abilities, sense of responsibility, and feelings for others in correcting the child’s misbehavior.

Power Assertion

A method of childrearing in which the parent uses punishment and authority to correct the child’s misbehavior.

Delay Gratification

The ability to resist the temptation for an immediate reward and wait for a later reward, often considered a sign of emotional intelligence and self-control.