[Solved] If the Marginal Cost of the 1000th Unit Produced by a Monopolist

Question 47
Multiple Choice
arrowQuestion 47arrow

If the marginal cost of the 1000th unit produced by a monopolist is $16 and its marginal revenue is $20,what should the monopolist do?


A)Produce more until the marginal profit becomes zero.
B)Produce less since the costs will be less and therefore the profit will be greater.
C)Produce less since it will be able to sell them at a higher price and therefore obtain greater profits.
D)Produce more until the marginal revenue becomes zero.

Tags

10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.

Business

Explore our library and get Economics Homework Help with various study sets and a huge amount of quizzes and questions

Related Questions


Get Free Access Now!
upload
Upload

Get free access by uploading any valuable academic documents

Invite
Invite

Invite your friends by sharing your unique referral link, and get a free access

Invite a friendInvite a friendInvite a friend
Join Us
Join Us

Sign up to get 5 free question for every quiz you visit. Or Subscribe and get instant access