« previous next »

Author Question: If a profit-maximizing monopolist finds that marginal cost is increasing and exceeds marginal ... (Read 62 times)

storky111

  • Hero Member
  • *****
  • Posts: 561
on: Jun 30, 2018
If a profit-maximizing monopolist finds that marginal cost is increasing and exceeds marginal revenue, it should:
 a. increase output and decrease price.
  b. increase price and decrease output.
  c. decrease both price and output.
 d. increase both price and output.

Question 2

How is the optimal level of input usage to produce a certain output identified with the help of isocosts and isoquants?


juwms

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

Let us assume a firm wants to produce 15,000 units of a good annually. The least-cost combination of inputs can be obtained from the point of tangency between the isoquant depicting an annual output of 15,000 units and the lowest isocost line achievable for this level of production.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

In middle childhood, children spend increasing amounts of time with peers and friends. In middle childhood, children spend increasing amounts of time with peers and friends.
Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure
Typical Startup Cost Categories Typical Startup Cost Categories
You make 4 semi-annual deposits starting at $350 and increasing at a constant rate of 2.14%. ... You make 4 semi-annual deposits starting at $350 and increasing at a constant rate of 2.14%. ...
A company that makes cell phones has the following cost structure. They have fixed costs of ... A company that makes cell phones has the following cost structure. They have fixed costs of ...
Video: Osmosis - Isotonic, Hypotonic, and Hypertonic​ Solutions

For a complete list of videos, visit our video library