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-Refer to Figure 10

Question 21

Multiple Choice

  -Refer to Figure 10.4.The Exclusive Gift Company has a monopoly over the sale of gold hula hoops.This company is currently selling 50 gold hula hoops at a price of $5,000.You are hired as an economic consultant to this company.You should advise this monopolist to A)  shut down in the short run and exit the industry in the long run. B)  produce in the short run and expand capacity in the long run. C)  produce in the short run but exit the industry in the long run if conditions do not change. D)  shut down in the short run but expand capacity in the long run if conditions do not change.
-Refer to Figure 10.4.The Exclusive Gift Company has a monopoly over the sale of gold hula hoops.This company is currently selling 50 gold hula hoops at a price of $5,000.You are hired as an economic consultant to this company.You should advise this monopolist to


A) shut down in the short run and exit the industry in the long run.
B) produce in the short run and expand capacity in the long run.
C) produce in the short run but exit the industry in the long run if conditions do not change.
D) shut down in the short run but expand capacity in the long run if conditions do not change.

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