A monopolist earning economic profit in the short run 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.
Answer: A
Economics
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When a firm experiences a positive technological change
A) the price of a share of the firm's stock rises. B) the firm is able to produce more output using the same inputs, or the same output using fewer inputs. C) the firm will hire additional workers in order to increase production. D) the value of the firm's assets rises.
Economics
If a technological change occurs such that the production function shifts from q = 10K0.5 L0.5 to q = 10.5K0.3 L0.5, then the technological change is
A) both neutral and non-neutral. B) neutral. C) non-neutral. D) Not enough information given.
Economics