A Monopolist Responds to an Increase in Marginal Cost by _____

question 49

Multiple Choice

A monopolist responds to an increase in marginal cost by _____ price and _____ output.

• A)increasing;decreasing
• B)increasing;increasing
• C)decreasing;increasing
• D)decreasing;decreasing

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Definitions:

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold, used historically by many countries but largely abandoned today.

Franc

A currency that was historically used in several countries, including France and Switzerland, some of which still maintain the franc in various forms.

Define

To specify or clarify the meaning of a word, phrase, or concept.

Redeem Dollars

The act of exchanging dollars for their equivalent value in goods, services, or other currencies, particularly in the context of international trade or finance.