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daniel ondera
on Nov 26, 2024

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If marginal costs decrease and the MC curve shifts down, a typical monopolist will

A) reduce price and reduce quantity of output.
B) reduce price and increase quantity of output.
C) increase price and reduce quantity of output.
D) increase price and increase quantity of output.

Marginal Costs

The change in total cost that comes from making or producing one additional item.

MC Curve

A graph representing the marginal cost of producing each additional unit of output in a firm or economy.

Monopolist

A monopolist is a sole provider of a good or service in a market, possessing significant control over prices and market conditions due to lack of competition.

  • Evaluate the effects of cost changes on monopolistic pricing and output decisions.
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Poulami ChandaNov 28, 2024
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