Suppose that a monopoly is currently producing the quantity at which marginal revenue is less than marginal cost. The monopoly can increase its profit by
A) shutting down.
B) lowering its price and increasing its output.
C) raising its price and decreasing its output.
D) lowering its price and decreasing its output.
E) not changing its price and increasing its output.
C
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With ________, firms value assets on their balance sheet at what they would sell for in the market
A) mark-to-market accounting B) book-value accounting C) historical-cost accounting D) off-balance sheet accounting
An "optimally imperfect" decision is one that
a. is vaguely right instead of precisely wrong. b. recognizes that the decision could always be better if given more time. c. recognizes that the cost of additional information probably exceeds the potential gain from making a better decision. d. recognizes that any decision is imperfect because humans have limited intellectual capacities.