Multiple Choice
The figure below illustrates the cost and revenue structure for a monopoly firm.
Figure 11-17
Refer to Figure 11-17. If the monopoly firm is currently producing Q3 units of output, then a decrease in output will necessarily cause profit to
A) remain unchanged.
B) decrease.
C) increase as long as the new level of output is at least Q2.
D) increase as long as the new level of output is at least Q1.
Correct Answer:
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