A single-price monopoly has marginal cost of $23 and marginal revenue of $28. Which of the following is definitely correct?
A) It is maximizing profit.
B) To increase profit, it should produce less.
C) To increase profit, it should produce more.
D) It should shut down.
E) It is making an economic profit.
C
You might also like to view...
The World Bank specializes in making loans to
A) industrialized nations. B) communist nations. C) developing nations. D) African nations.
If both the demand for and the supply of computers are increasing, which of the following statements is TRUE?
A) The consumer should buy a computer now since the price will be higher in the future. B) The consumer should wait and buy a computer later since the price will be lower in the future. C) The price of a computer will be the same in the future as it is now. D) It is impossible to know, given only this information, whether the prices of computers will go up or down in the future.