A monopolist responds to an increase in marginal cost by _____ price and _____ output.
A)increasing;decreasing
B)increasing;increasing
C)decreasing;increasing
D)decreasing;decreasing

Question

Quizplus · Accepted Answer

When a monopolist faces an increase in marginal cost, they typically respond by increasing the price to cover the higher costs and decreasing output to maintain their profit margins.

A Monopolist Responds to an Increase in Marginal Cost by _____