-The single-price monopolist shown in the above figure could increase its economic profit if
A) it became a price discriminator.
B) its costs of production decreased.
C) the demand for its good increased.
D) any or all the above were to occur.

Question

-The single-price monopolist shown in the above figure could increase its economic profit if
A) it became a price discriminator. 
B) its costs of production decreased. 
C) the demand for its good increased. 
D) any or all the above were to occur.

Quizplus · Accepted Answer

A single-price monopolist can increase its economic profit if it becomes a price discriminator, if its costs of production decrease, or if the demand for its good increases. Any of these changes would lead to higher profits.

-The Single-Price Monopolist Shown in the Above Figure Could Increase