60 316
Assignments Done
98%
Successfully Done
In April 2018

Answer to Question #49402 in Microeconomics for susie

Question #49402
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
Expert's answer
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 increasing price and reducing output to reach the point, where MR = MC.
So, the right answer is b) increasing price and reducing output.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions