Examlex
Suppose that a profit-maximizing monopoly firm undergoes a substantial technological change that reduces its marginal and average total costs by $40.If in response to its reduction in cost the firm changes its price in a profit-maximizing way,then we can predict that its total economic profit will:
Free-ride
The act of benefiting from resources, goods, or services without paying for the cost of the benefit.
Rival
In economics, a good or service is considered rival if its consumption by one individual prevents simultaneous consumption by other individuals.
Excludable
Refers to a property of a good or service where it's possible to prevent people who have not paid for it from having access to it.
Efficient Quantity
The amount of a good or service that maximizes the net benefit to society.
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