Author Question: Refer to Figure 12-7. If the market price is P3 the firm A) will earn enough revenue to cover its ... (Read 95 times)

Pineapplelove6 · **on:** Jun 29, 2018

Refer to Figure 12-7. If the market price is P3 the firm

A) will earn enough revenue to cover its variable costs but not its fixed costs.
B) will break even.
C) will make a profit.
D) will produce a quantity of Q1.

Question 2

If a monopolist's price is 50 per unit and its marginal cost is 25, then

A) to maximize profit the firm should continue to produce the output it is producing.
B) to maximize profit the firm should decrease output.
C) to maximize profit the firm should increase output.
D) Not enough information is given to say what the firm should do to maximize profit.