Suppose That a Profit-Maximizing Monopoly Firm Undergoes a Substantial Technological

question 31

Multiple Choice

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:

• A)fall.
• B)remain unchanged.
• C)rise.
• D)It is not possible to make a determination from the information given.

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Definitions:

Exempt Status

A classification under labor laws that categorizes employees who are exempt from overtime pay and/or minimum wage requirements, typically based on the type of work they perform.

Job Responsibilities

Specific duties and tasks that an employee is expected to perform as part of their role within an organization.

Davis-Bacon Act

A United States federal law that requires paying the local prevailing wages on public works projects for laborers and mechanics.

Walsh-Healy Public Contracts Act

A U.S. federal law that requires minimum wage, maximum hours, and safety and health standards for contractors producing goods for the government.