Asked by
Shaikha Almansoori
on Nov 27, 2024
Verified
Suppose that a monopolist calculates that at its present output level, marginal cost is $2.00 and marginal revenue is $3.00. The firm could increase profits by
A) increasing price and decreasing output.
B) decreasing price and increasing output.
C) decreasing price and leaving output unchanged.
D) decreasing output and leaving price unchanged.
Marginal Cost
The upsurge in total financial outlay occasioned by the production of one supplementary unit of a product or service.
Marginal Revenue
The additional revenue that a firm gains when it sells one more unit of a product.
- Implement the notions of marginal costs and marginal revenues in the strategic planning of enterprises focused on profit maximization.
Verified Answer
BM
Learning Objectives
- Implement the notions of marginal costs and marginal revenues in the strategic planning of enterprises focused on profit maximization.
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