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11 Apr 2018
6. Which one of the following statements is correct for a profit-maximizing monopolist operating a single production facility with a linear Total Cost function? the monopolist can set both price and output, each independently of the other the monopolist will maximize profits along the inelastic part of the average revenue curve if fixed costs increase, then the monopolist would increase price and reduce output if fixed costs increase, then the monopolist would reduce price and increase output if household incomes increased and the monopolist produced a normal good, then the monopolist's price and output would both increase. * c)
6. Which one of the following statements is correct for a profit-maximizing monopolist operating a single production facility with a linear Total Cost function? the monopolist can set both price and output, each independently of the other the monopolist will maximize profits along the inelastic part of the average revenue curve if fixed costs increase, then the monopolist would increase price and reduce output if fixed costs increase, then the monopolist would reduce price and increase output if household incomes increased and the monopolist produced a normal good, then the monopolist's price and output would both increase. * c)
Deanna HettingerLv2
13 Apr 2018