Figure 14-3
-Refer to Figure 14-3.Profit can always be increased by increasing the level of output by one unit if the monopolist is currently operating at (i)Q0.
(ii)Q1.
(iii)Q2.
(iv)
Q3)
A) (ii)only
B) (i)or (ii)only
C) (i)only
D) (i),(ii),or (iii)only

Question

Figure 14-3 
-Refer to Figure 14-3.Profit can always be increased by increasing the level of output by one unit if the monopolist is currently operating at (i)Q0.
(ii)Q1.
(iii)Q2.
(iv)
Q3)
A) (ii)only 
B) (i)or (ii)only 
C) (i)only 
D) (i),(ii),or (iii)only

Quizplus · Accepted Answer

A monopolist can increase profit by increasing output if marginal revenue (MR) is greater than marginal cost (MC). At Q0 and Q1, MR is likely greater than MC, allowing for profit increase by producing more.

Figure 14-3 -Refer to Figure 14-3.Profit Can Always Be Increased by Increasing