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18 Dec 2019

True or False (with explanation of why):

a. When a monopolist operates on the inelastic region of the market demand curve, it can always increase profit by producing less output.

b. When a monopolist operates on the elastic region of the market demand curve, it can always increase profit by producing more output

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31 Dec 2019
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Related questions

14. Here are several statements about the demand and output of a monopoly producer: 1. For a monopolist, the change in total revenue brought about by producing an extra unit of output is always less than the current price of that output. II. A monopolist will maximize profit at the output where marginal revenue is as high as possible above marginal cost III. A monopoly firm will maximize profit by producing where demand is inelastic Which of the above statements are true? A) I only B) II only C) III only D) I and II E) I and III F) II and III G) I and II and III ) none of the statements are true

Which of the following statements is False?

A) The marginal revenue earned by a monopolist will always be less than the products price.

B) For a profit-maximizing monopolist, marginal rervenue equals marginal cost.

C)Typically there are numerous very close substitutes for the product of a monopolist.

D) An unregulated, profit-maximizing monopolist will not operate in the inelastic portion of the demand curve.

1. A monopolist can increase profits by decreasing production if its currently producing at a point where:

Select one:

P = MC

P > MC

P < MR

MR = MC

2. The reason a monopoly creates a deadweight loss is that a monopolist charges a price that is _________ marginal cost.

Select one:

the same as

greater than

less than

None of the other choices is correct

3. A monopolist maximizes profits when it produces an output at the point where:

Select one:

None of the other choices is correct

P > MC

P = MC

MR > MC

P < MR

4. A monopolist knows an increase in price will have no impact on total revenue when its price elasticity of demand is:

Select one:

price inelastic

perfectly elastic

price elastic

equal to 1 (in absolute terms)

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