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.
Correct Answer:
Verified
Q39: The following data relates to an unregulated
Q40: Where is a monopolist's profit maximized?
A)At break-even
Q41: The following graph depicts the costs and
Q42: The following table gives the cost and
Q43: The following table gives the cost and
Q45: The following graph depicts the costs and
Q46: The following table gives the cost and
