Figure 10.2 shows a monopolist's demand curve. Suppose that the marginal cost is $6 for all units and the current output level is 4 units. Then what would you recommend to the firm?
A. Lower the price to sell more units.
B. Raise the price and sell fewer units.
C. Maintain the current price and output level.
D. There is not sufficient information.
Answer: B
You might also like to view...
Which of the following explains the changes in the U.S. adult male labor force participation rate since 1948?
A) Fewer men consider themselves discouraged workers as compared to the past. B) More men are joining the military as compared to the past. C) More men are retiring later in life as compared to the past. D) Younger men are remaining in school longer as compared to the past.
The exchange rate is determined by the interaction of the supply and demand for currencies in which exchange rate system is:
A) fixed. B) flexible. C) all of the above. D) none of the above.