Answer to Question #49387 in Microeconomics for kristin

Question #49387
1.If the uniform price of a monopolist’s good is $50 per unit and its marginal cost is $25, then: to maximize profit the firm should increase output to maximize profit the firm should decrease output to maximize profit the firm should continue to produce the output it is producing there is not enough information to determine whether output should be changed or remain constant to maximize profit 2. If a profit maximizing monopolist is producing such that marginal cost is $10 and its marginal revenue is $4, it will increase its profits by: reducing price and increasing output increasing price and reducing output reducing both price and output increasing both price and output raising price while keeping output unchanged 3.if a monopolist is producing a level of output that maximizes total profit, then it will necessarily be minimizing total cost maximizing profit per unit of output maximizing total revenue maximizing the difference between total revenue and total cost
Expert's answer
1.If the uniform price of a monopolist’s good is $50 per unit and its marginal cost is $25, then:
c) there is not enough information to determine whether output should be changed or remain constant to maximize profit
2. If a profit maximizing monopolist is producing such that marginal cost is $10 and its marginal revenue is $4, it will increase its profits by:
b) increasing price and reducing output
3.if a monopolist is producing a level of output that maximizes total profit, then it will necessarily be
d) maximizing the difference between total revenue and total cost

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