A monopolist produces 14,000 units of output and charges Rs.14 per unit. Its marginal revenue is Rs.8, its marginal cost is Rs.7 and rising, its average total cost is Rs.10, and its average variable cost is Rs.9. The monopolist should
A) increase curve output, which will result in an increase in the firm\s positive economic profit
B) increase output, which will reduce the firm\s economic losses
C) shut down, which will reduce the firm\s economic losses
D) decrease output, which will result in an increase in the firm\s positive economic
Correct Answer:
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Q1: When a perfectly competitive industry is in
Q2: The short-run supply curve of a perfectly
Q4: Which of the following is a characteristic
Q5: If an imperfectly competitive firm is producing
Q6: Which of the following is a criticism
Q7: Marginal revenue is equal to price for
Q8: Third degree price discrimination occurs when the
Q9: Lerner Index is a measure of:
A)Elasticity of
Q10: The dual pricing system of charging high
Q11: The marker structure which have very large
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