To Maximize Profit, the Monopolist Increases Output

question 216

Multiple Choice

To maximize profit, the monopolist increases output:

• A) until it is using full manufacturing capacity.
• B) until marginal cost is equal to marginal revenue.
• C) to the same amount it would produce if the firm was competitive, but maximizes price.
• D) as long as the marginal revenue curve is higher than the demand curve.

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Definitions:

Diameter

The diameter of a circle is the longest straight line that can be drawn through the center, connecting two points on the circumference.

Height

The measure of vertical distance, either the highest point or the distance from base to top.

Standard Form

A way of writing down very large or very small numbers easily in mathematics, or the general representation of a linear equation as Ax + By = C.

Hyperbola

A smooth curve located in a plane, characterized by its geometric characteristics or by the solutions of equations describing it.