A monopolist earning short-run economic profit determines that at its present level of output, marginal revenue is $23 and marginal cost is $30 . Which of the following should the firm do to increase profit?
a. Raise price and lower output.
b. Lower price and lower output.
c. Raise price and raise output.
d. Lower price and raise output.
e. Lower output but leave price unchanged.
A
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Which of the following is true? a. Economists assume that there are no private property rights in a free market
b. A free market is also known as a fettered market. c. A voluntary transaction means that all parties to the transaction must expect to benefit. d. People always receive goods and services at a discounted price in a free market. e. An economic growth is represented by an inward shift of the production possibility curve.
In the labor market shown below , if the demand for labor increases so that the equilibrium wage rate goes above the minimum wage Wm, then the minimum-wage law will:
A. Cause higher unemployment
B. Cause lower unemployment
C. Labor supply to decrease
D. Become ineffective in the market