Faced with a Decrease in the Demand for Its Product,a

question 47

Multiple Choice

Faced with a decrease in the demand for its product,a monopolist will lower prices and maintain output at its previous level if

• A)the gain in profit is less than the increase in real wages paid.
• B)the gain in profit is less than the decrease in real wages paid.
• C)the gain in profit is less than the menu costs.
• D)the gain in profit is greater than the increase in menu costs.

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